IamDozzy
Active member
Factors of production are the resources one should have in order to ensure that a production target is met. There are four factors of production which are I am going to be explaining. When these factors of production are in place, there is an assurance that production would take place in order to bring about sales. Some of these factors of production include;
1. Land or Production space
Land or Production space is a space or an enclosement where production or any economic activity can take place. It's reward is rent.
2. Labour
For production or economic activities to take place, there has to be employees that would carry out this production or economic activity and it's reward is salary or wages.
3. Capital
For a business owner or an organization to start production or an economic activity, there has to be capital in place to carry out day to day activities on the organization or to purchase the needed equipment. It's reward is interest
4. Entrepreneur
This is the business owner or manager of the economic activity. Without the entrepreneur, production cannot take place as it is the entepreneur that is with the business idea with profit as his/her reward.
1. Land or Production space
Land or Production space is a space or an enclosement where production or any economic activity can take place. It's reward is rent.
2. Labour
For production or economic activities to take place, there has to be employees that would carry out this production or economic activity and it's reward is salary or wages.
3. Capital
For a business owner or an organization to start production or an economic activity, there has to be capital in place to carry out day to day activities on the organization or to purchase the needed equipment. It's reward is interest
4. Entrepreneur
This is the business owner or manager of the economic activity. Without the entrepreneur, production cannot take place as it is the entepreneur that is with the business idea with profit as his/her reward.