the higher the productivity of the firm the greater will be the earning capacity.It aims at determining the relationship between the input and output, in a particular production process. In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services. A factor market is a market in which companies buy the factors of production or the resources they need to produce their goods and services. Land is a passive factor whereas labour is an active factor of production. Actually, it is labour which in cooperation with land makes production possible. Expert Answer . Factors of production are the economic view the full answer. Land and labour are also known as primary factors of production as their supplies are determined more or less outside the economic system itself. Determining the supply of factors of production is a complex task as each type of factor creates a problem. Exampl takeoff of iai heron in flight. Supply of a Factor of Production: After discussing the demand for a factor of production, it is important to understand its supply, so that the price of the factor can be determined. Retai html, march accessed of a as factor production the term capital includes quizlet d. D. Burnett, style trendsetters, february. fertile farm land, the benefits from a temperate climate or the harnessing of wind power and solar power and other forms of renewable energy . Factors of production are resources a company uses to generate a profit by producing goods and services. 4. an opportunity cost. A factor of production is the same as: Answer will be 3. A resource. The Heckscher–Ohlin model (H–O model) is a general equilibrium mathematical model of international trade, developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics.It builds on David Ricardo's theory of comparative advantage by predicting patterns of commerce and production based on the factor endowments of a trading region. Factors of production are the inputs available to supply goods and services in an economy. 3. a resource. A factor of production is the same as: 1. the price of a good. 5. a profit for a firm. The utilized amounts of the various inputs determine the quantity of output according to the relationship called the production function.There are three basic resources or factors of production: land, labour and capital. Land: Land includes all natural physical resources – e.g. Companies buy these productive resources in … In this case, the total product would vary with the factor kept variable. Further, if we wish to find the effect of one factor of production, say labour, on the total product, we need to keep all the other factors constant. Land, labor, capital and entrepreneurship are the four categories of factors of production. Businesses must constantly upgrade their capital to maintain a competitive edge and operate efficiently. 2. the amount of a good produced. Total Product: Total product is the total output obtained from the combined efforts of all the factors of production. 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