Dec. 15, 2020. Blog. ZIMSEC O Level Commerce Notes: Factors of Production. Top 10 blogs in 2020 for remote teaching and learning; Dec. 11, 2020 Factors of Production Definition. The factors used in the production are called factors of production. Testing Production Functions for Returns to Scale: Fig. Factor Description Reward; Land: Refers to the site on which production takes place including all the natural resources used in the production process. Occupation can be defined as any economic or productive activities which people engage in to create and provide goods and services in order to make a living. To put it in different terms, the factors of production are the inputs needed for supply. The factors of production … All of them contribute in the production. The inputs that an enterprise utilises in the production procedure are called as factors of production. The factors of production are land, labor, capital and organization. Also Read: Sandeep Garg Solutions for Production Function. The four factors of production act as inputs during the production process. 13.16 illustrates the generalized relation­ship between the level of output and the level of input usage (with the factor mix of labour to capi­tal held constant). This includes mineral deposits, water, arable land, vegetation, natural forests, marine resources, the atmosphere, sunshine and animal life. An entrepreneur combines the other three factors of production to add to supply. Stages/Types Of Production. They are a fixed supply. For their contribution they are paid remuneration. The payments made to the factors of productions are called rent, wage, interest and profits respectively. Businesses must constantly upgrade their capital to maintain a competitive edge and operate efficiently. Entrepreneurship as a Factor of Production Entrepreneurship is the drive to develop an idea into a business. How to increase brand awareness through consistency; Dec. 11, 2020. The factors of production are the resources used in creating and producing a good or service and are the building blocks of an economy. In order to manufacture output, a firm may require any amount of different inputs. This factor of production includes machinery, tools, equipment, buildings, and technology.   Natural Resources – sometimes called land – consists of all the gifts of nature. The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. There are two stages in production, they are: (a) Direct Production: This is the type of production in which an individual produce goods and services only for family uses or consumption. They product are not for sale. The factors of production are land, labor, capital, and entrepreneurship. Distributor c. Consumer. Factors Determining The Types Of Occupation; Occupation In Commerce. Definition Of The Four Factors Of Production Commerce Essay. The most successful are innovative risk-takers. Producer b. It is possible to identify returns to scale. The Importance Of External Factors Affecting An Organisation Commerce Pages: 15 (3727 words); Assessing The Production And Operations Management Commerce Pages: 9 (2205 words); What factors determine the elasticity of demand for rail use Pages: 4 (972 words); The Importance Of Production Function And Production Management Pages: 7 (1504 words) Factors of Produc-on The scarce produc:ve resources of an economy can be placed into one of the four following headings. 1) LAND 2) LABOUR 3) CAPITAL 4) ENTERPRISE In general terms, Factors of Produc:on are the “stuff” used to make “things”. Today, people engage in various activities to earn a living and to satisfy their numerous wants. They are also generally known as resources. In production three groups of people are involve, namely: a. 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