Factors of production have been categorized into four types. There are four factors of production which are prevailed in Palampur. One uses the land to produces goods. The 4 factors of production are land, labor, capital, and entrepreneurship. Factors of production are the inputs needed for the creation of a good or service. Labour- the people who do the work. Four Factors of Production - A Practical Exercise: The following exercise is designed to help students identify the four factors of production in a real-life context. Land. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Factors which are used to carry out the process of production are called factors of production. Factors of reproduction Factors of reproduction or resources are inputs or resources that are used in the generation of goods and services with an aim of making profit. Types of Factors of Production. The first factor of production is land, but this includes any natural resource used to produce goods and services Brainly User Brainly User ... Get the Brainly App According to Eraser, “Factor of production as a group or class of original productive resources.” The production process of an organization can be efficient, if there is an optimal use of factors. The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. All natural resources either on the surface of the earth or below the surface of the earth or above the surface of the earth is Land. Capital—Investment required in the business and the various inputs required at every stage. In the modern economy, economists classified these factors into two categories. Exercise. The utilized amounts of the various inputs determine the quantity of output according to the relationship called the production function. To put it in different terms, the factors of production are the inputs needed for supply. Labor is the effort that people contribute to the production of goods and services. These factors of production are as follow: Land- Land and other natural resources. They are land and labour, as capital is created by the application of labour on land and an entrepreneur is the human resource who performs and controls the business. factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services. Their ownership and value are the bedrock of any economic system. The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. It refers to all natural resources. Market- The healthy competition. Therefore, all the four factors of production are equally important for the production activity of an organization. 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