Both land & capital are scarce but there is a difference between the two factors of production. state the two differences between them.
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Answer: There are four factors of production land , labor , capital and entrepreneur . land is a limited factor of production where as capital is a scare factor but can be raised through several sources .
Explanation: The two difference between the factors are :
land has no cost of production but capital involves some cost of production .
land being limited and immobile , it cannot be moved from its mean position whereas , capital can be taken to any desired place depending on the purpose , hence capital has mobility .
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