Factors of Production
Defination: Factors of production are those resources that are used by the producer in the production process to produce goods and services for the consumer. There resources or inputs are also called "Producter Goods", in order to distinguish them from the goods and services (Finished goods) purchased by the consumers, which frequently labelled, "Consumer Goods". These factors of production are used in a combination at the time of production process.
*The amount of the various inputs used to determine the quantity of output this relationship is called production function.
There are four factors of production land, labour, capital and entrepreneurship.
Fig. 1
Figure below shows the relationship of these four factors between them; to complete the production process.
