Factor of Production (FOP)

Bismillahirahmanirahim.

There are FOUR FACTORS of production that used in production process order to produce economic goods and services.


LAND-It is free gift of natures and the value based on quality and location. The most important, it is a major of resources .

 

 

 LABOUR-The services contributed by human that involved mental and physical process include the skill and unskillful.

CAPITAL-Human made resources to produce other  goods and services. The return to the capital is interest

ENTREPRENEURSHIP-Those who are can manage their firm to produce the goods and services. They are also willing to take risks and organize the other factors production