List the Four Broad Categories of Factors of Production

question 212

Essay

List the four broad categories of factors of production.

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Definitions:

Zero Economic Profits

A situation in which a firm's total revenues are exactly equal to its total costs, including opportunity costs, indicating neither an economic profit nor loss.

Long-Run Equilibrium

A market state where all producers and consumers have fully adjusted to all changes, and there are no forces causing further adjustments.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Marginal Revenue

The increase in revenue achieved by selling one additional unit of a product or service.