Lex Corporation is an expanding telecommunications company. However, they are in need of more computers for their new employees. Which factor of production do the computers represent? Capital Entrepreneur Labor / Human Resources Land / Natural Resources

Question

Business

Christopher Roth

17 July, 02:02

Lex Corporation is an expanding telecommunications company. However, they are in need of more computers for their new employees. Which factor of production do the computers represent? Capital Entrepreneur Labor / Human Resources Land / Natural Resources

+3

Answers (1)

Know the Answer?

Chandler · Answer 1

The Answer is Capital.

Explanation:

In Economics, we identify that there are 4 main factors that contribute to the production, we call them "factors of production" and they are,

Land: Not just "land" but also includes all the natural resources that could be extracted and used for any production purposes. Labor: Mental and physical efforts carried out by humans in the production process. Capital: Assets or anything that can enhance/boost the ability to produce. Usually, these are generated or created as a result of human interventions and efforts. Entrepreneurship: the set of skills required to coordinate and manage the process of production successfully.

So, under which category of factors that the computers fall under? Simple right? Its 3. Capital! because they are assets that are created by humans to aid in enhancing the production capabilities!