Factors of Production

Factors of production

Resources must be used to produce a good or provide a service:

  • Land is used to represent the natural resources on the planet available for production, they can be renewable or non-renewable.
  • Labour is the physical and mental effort used in the production and sale of a good/service.
  • Capital is anything manufactured used in the creation and production of other products.
  • Enterprise is the management, organization and planning of the other three factors of production.

 

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