Natural Resources as a Factor of Production for Mining Are

question 89

Multiple Choice

Natural resources as a factor of production for mining are a practical consideration when a mining company considers

• A) the ease with which ore could be mined.
• B) the number of miners available to mine the ore.
• C) the amount of capital required to build the mine.
• D) the profit that can be made from mining the ore.
• E) the number of customers who want to buy ore.

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Definitions:

Direct Labor

The labor costs directly tied to the production of goods or services, including wages for workers who physically manufacture a product.

Raw Material

Fundamental materials in their original, altered, or partially processed forms that serve as inputs for manufacturing.

Selling and Administrative Expenses

Costs associated with selling products or services and managing the business, excluding production costs.

Fixed Overhead

Ongoing, recurring costs associated with operating a business that do not vary with production level or sales volume.