Babylon 10
The world's best online dictionary

Download it's free

Definition of Factors of production

Babylon English

means used in the manufacturing of merchandise and the providing of services (land, labor, capital, management, etc.)
Factors of production Definition from Social Science Dictionaries & Glossaries
A Glossary of Political Economy Terms
The scarce resources that are useful not so much for direct and immediate satisfaction of human wants as for producing other goods or services. Economists often find it useful for purposes of theoretical simplification to group the millions of different sorts of factors of production into several very broad categories and then discuss them as though all the items within each category were perfectly substitutable for each other and therefore traded on a single market . The simplest such conventional categorization of the factors of production divides them into land , labor , capital , and sometimes also entrepreneurship and/or human capital .
[See also: derived demand ]
Factors of production Definition from Encyclopedia Dictionaries & Glossaries
Wikipedia English - The Free Encyclopedia
In economics, factors of production are the inputs to the production process. Finished goods are the output. Input determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a production function. There are three basic factors of production: land, labour, capital. Some modern economists also include entrepreneurship as a factor of production. These factors are also frequently labeled "producer goods" so as to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods." All three of these are required in combination at a time to produce a commodity. In economics, production means creation or an addition of utility. Factors of production (or productive 'inputs' or 'resources') are any commodities or services used to produce goods or services.

See more at Wikipedia.org...
© This article uses material from Wikipedia® and is licensed under the GNU Free Documentation License and under the Creative Commons Attribution-ShareAlike License