Factors of production
Imagine that you are visiting a modern food-processing plant. It is processing vegetables to put into cans. What do you see?
The most obvious sight will be large areas of land and factory buildings. Inside, you will see machinery, equipment and employees. Some workers will be looking after the equipment. In the production areas you will see people preparing the vegetables. Other workers will be loading and unloading supplies and finished goods.
The factors of production are what make the business works: land, labour, capital and enterprise
- In the vegetable-processing plan, the land includes the site on which the factory is built
- The labour is the factory…