Question

Which factor of production is the most mobile?

Answer 1

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Factor mobility refers to the ability to move factors of production - labor, capital or land - out of one production process into another. Factor mobility may involve the movement of factors between firms within an industry, as when one steel plant closes but sells its production equipment to another steel firm.

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Answer 2

Factor mobility refers to the ability to move factors of production - labor, capital or land - out of one production process into another. Factor mobility may involve the movement of factors between firms within an industry, as when one steel plant closes but sells its production equipment to another steel firm.