Question

From four factors of production which is consider the most important factor?why?

Answer 1

Answer:

The most important for the production is Capital and Economic value because Capital can be the money that companies use to buy resources.

Answer 2

Entrepreneurship or human capital is the most important factor/input of production.

Explanation:

• In Microeconomics or Production Economics,the four factors of production include land,labor,capital or physical factors or inputs of production and entrepreneurship or human capital.
• Entrepreneurship or human capital is generally considered as the most important factor of production.
• Entrepreneurial initiatives involve human mind,reasoning,discretion and planning pertaining to every aspect of business operation or functions.
• Entreprenuerial planning basically includes proper and optimal utilization of other factors of production such as land,labor and capital inputs which can ensure maximum productive efficiency in the production process.
• Proper entrepreneurial mindset and effective long term business planning can lead to maximize the economic or financial success and prosperity of any firm or company,reflected by maximization of revenue and profit through productive and optimal resource utilization in the production process and business operation.