In agriculture which factor of production is most dominant? Contrast it with that of industrial sector.
Answers
Answer:
Explanation:
Ok, I’ll take a swing at this one. I am going to assume by factors of agriculture, you are referring to an input or circumstance that must be controlled in order to make the agricultural enterprise a success.
On a grander scales, the geo-political influences that determine viability of a sector of the economy are probably similar for both agriculture and industry. Although, as we are about to see, retribution can influence one because favor is being given to the other. Case in point, the tariff being imposed on Chinese steel will very likely result in tariffs being imposed on grains and consumer foodstuffs going into China.
One factor that poses varied degrees of disparity for agriculture and industry would be the need or land. Well drained and watered, fertile, accessible land. Whether it is a plant or animal enterprise, we must have land to use to conduct business. Since we aren’t making any more of it and once taken out of production, fouled or destroyed it can have a lasting impact on the capacity of the only essential industry, agriculture. Without good land we may as well close up shop and go home to the suburbs, dump our dinner out of a box,nuke it in the microwave and hope technology has found a way to produce tasty mac and cheese in a test tube to fill the box or we go hungry!
Unfortunately, the concepts of food security and land management are not universally understood or embraced by individuals nor their governments around the world.
Industry on the other hand, while requiring specific inputs, can build another warehouse when they need more space or find another source of metal to use or plastic containers to store their production. If it costs a little more, while they are usually cost aware if not sensitive, the cost gets added to the cost of goods sold and you just pay more when you buy it. Agriculture is the only industry where the producers are price takers not price makers. The price discovery system for ag commodities is run by investors and users of the commodities, not by the farmer. The only thing he usually controls is the cost of production but that can be skewed greatly by the vagaries of weather. Planting costs may make for an estimated cost to produce a bushel of corn to be $1.25 based on normal yields. But drought strikes, yield drops precipitously and suddenly production costs per bushel harvested skyrocket and he can’t cover his costs because the manufacturer of the mac and cheese bought cheaper grain from Russia!
I guess that might be more than 1 swing, did I strike out or get a hit? Hit a home run you say! The crowd goes wild!
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Answer:
The Basics of Factors of Production
The modern definition of factors of production is primarily derived from a neoclassical view of economics. It amalgamates past approaches to economic theory, such as the concept of labor as a factor of production from socialism, into a single definition.
Land, labor, and capital as factors of production were originally identified by the early political economists such as Adam Smith, David Ricardo, and Karl Marx. Today, capital and labor remain the two primary inputs for the productive processes and the generation of profits by a business. Production, such as in manufacturing, can be tracked by certain indexes, including the ISM Manufacturing Index.
Land as a Factor
Land has a broad definition as a factor of production and can take on various forms, from agricultural land to commercial real estate to the resources available from a particular piece of land. Natural resources, such as oil and gold, can be extracted and refined for human
Explanation:
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