Another example is if a business has £5,000 and has to choose between using the money for a new advertising campaign or more training for its staff, they must weigh up the opportunity costs of picking one option over the other. In this guide there are only 4 points listed where two of them are different to those he listed in the video: 1) Natural conditions. In economic terms factors of production can be defined as inputs that are used for the production of goods or services with the aim to make economic profit. Image by Sabrina Jiang Investopedia 2020 Land As a Factor Land has a broad definition as a factor of. For example this could be when a business must choose between two different office locations, they will face opportunity costs for the location they do not choose. On his video, he pointed out 5 factors that impacts supply: 1) Price of related product. There are four factors of productionland, labor, capital, and entrepreneurship.
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