Question

For a company that is going to create 300 parking space for employees. 300 parkings will be supplied

question: what will be the factor of production and factor payment for the company?

question: based on the factor of production draw a table showing TFC TVC and TC and needs to be related to the supply provided on a daily basis and monthly basis with fluctuation taken into consideration. explain in a table

Answer 1

Factor of production- Labour, capital, land and entrepreunership

Land- The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land. Some common land or natural resources are water, oil, copper, natural gas, coal, and forests. Land resources are the raw materials in the production process. Factor payment is the wage.

Labour- Labor is the effort that people contribute to the production of goods and services. Factor payment is the wage

Capital- the machinery, tools and buildings humans use to produce goods and services. Factor payment is the rent

Entrepreunership- An entrepreneur is a person who combines the other factors of production - land, labor, and capital - to earn a profit. Factor payment is the profit earned

Total factor cost on a monthly basis- cost of renting land, cost of renting technology

Total variable cost on a daily basis- cost of hiring workers

Total cost is the sum of TFC and TVC