The Three Main Factors of Production, or Categories of Inputs

question 37

Short Answer

The three main factors of production, or categories of inputs, used by firms to produce goods and services are

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Definitions:

Steady Source

A consistent and reliable means of obtaining something, such as income or information.

Clientele Argument

A theory suggesting that companies attract investors whose preferences align with the company's policies regarding dividends, financing, and investment.

Dividend Theory

A set of principles and theories that explain the rationale and effects of dividend policies on an organization's value and shareholders' wealth.

Capital Gains

Capital gains represent the positive difference between the sale price of an asset and its original purchase price.