Five Factors of Production Essay - 415 Words.
So let talk about each of the factors of production in details Land In economies we have studied that land doesn’t only mean that where the production is talking place it also means the different sources used for the production of any type of product like for example any natural resources of something, well the Kellogg’s corn flakes is a multinational company and has its site of production.
Farmers make decisions about what to grow, what animals to keep, the level and type of inputs and the methods they will use. Their decisions are based upon a range of social, economic and environmental factors. The farmers’ attitudes and level of knowledge are also important. The video below explains the factors affecting farming in more detail.
Types of Production Primary - This is the sector that involves the harvest of raw materials For example in the chocolate industry, this is the stage where sugar and coco beans are collected Secondary - This is the sector that involves manufacturing of chocolate products For example in the chocolate industry, this is the stage where the coco beans are crushed and sugar is added Tertiary - This.
Essay on the Factors Causing Decrease in Supply: Various factors responsible for reducing the supply of goods and services in the economy are given below: 1. Scarcity of Factors of Production: On the supply side, inflation may occur due to the scarcity of factors of production, such as, labour, capital equipment, raw materials, etc.
In production and operations management, three types of capacity are often referred to: Potential Capacity The capacity that can be made available to influence the planning of senior management (e.g. in helping them to make decisions about overall business growth, investment etc).
Factors of production - the resources used by a company to produce goods and services. Land - an essential factor of production in many economic activities. Labor - a factor of production used.
Development is basically based on the four factors of production, that is, land, capital, labor, and entrepreneurship. Land is a major factor as it lays the foundation for the other factors in production. Land entails the development of production industries and infrastructure such as transport means, which facilitate the production process.