The Term Factor of Production Refers to

question 51

Multiple Choice

The term factor of production refers to

• A)Only those goods that are produced and then used to produce other goods and services.
• B)Labor only.
• C)Any resource used to produce goods and services.
• D)Factories and machinery only.

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Definitions:

Normal Return

The minimum profit necessary for a company to remain viable in its industry, often considered the opportunity cost of capital.

Own Capital

The value of the assets owned by a company or individual that are used in the production process or for investment purposes.

Short Run

A period in which at least one of a firm's inputs is fixed, limiting the firm’s ability to increase production.

Industry Entry

The act of beginning or entering into a specific market or field of business.