Five Factors of Production

The Five Factors of Production This paper entrust discuss the factors of payoff. Four factors, land, labor, capital, and entrepreneurship, ar commonly recognized. However research has shown that a fifth factor, engineering should be added and is becoming more important in instantlys economy and almost overshadowing the previous four factors of production. Land in production represents the natural materials used in production of goods and run. It provides the rude materials and resources that become the goods or the land that a building is constructed on to produce the goods. Labor is the physical and mental factor, whether its a invent artist working on a magazine, or the restrainer that macrocosmages the billing. The end result of Labor equals a product or service and provides wages for employees. heavy(p) can refer to resources or investments that are either man- made or manufactured objects that armed service produce other products such as buildings and equipment to operate businesses. Capital can be roads, machines, factories, or office buildings, anything that help man create and produce other goods (2007). Another factor of production is Enterprise which is when resources have people called entrepreneurs, who form the ideas for goods or services and plan and organize its production (2007).

Technology should definitely be considered as a factor of production. In fact quondam(prenominal) studies have suggested that engine room will grow significantly in the future. Fueled by its constant technological and price improvements, development technology (IT) is displacing other inputs in the production of goods and services (Dewan and Min, 1997). This ingest which was conducted a decade ago foreshadowed the important role that technology plays today. IT capital is a net substitute for both average capital and labor, suggesting that the factor share of IT in production will grow to more significant levels over time (Dewan and Min, 1997). Land, labor, capital, and entrepreneurship:... If you fatality to get a full essay, order it on our website: Ordercustompaper.com

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