Explain the basic requirements need for production?
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The main requirements for the production of goods and services are as below:
1. Land: This is the first factor of production and it consists of any natural resource used in goods and services production.
2. Labor: It is known as the human capital, It is the effort that people contribute to the production of goods and services
3. Capital: Capital consists of machines, tools, infrastructure etc. which is used in production Capital differs based on the worker and type of work.
4. Entrepreneurship: It is the person who combines all 3 factors of production and keeps a check and balance on them in order to earn profits.
1. Land: This is the first factor of production and it consists of any natural resource used in goods and services production.
2. Labor: It is known as the human capital, It is the effort that people contribute to the production of goods and services
3. Capital: Capital consists of machines, tools, infrastructure etc. which is used in production Capital differs based on the worker and type of work.
4. Entrepreneurship: It is the person who combines all 3 factors of production and keeps a check and balance on them in order to earn profits.
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The main requirement are land, labour, capital, entrepreneurship
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