Matt Newell, a former Air Force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views of the Rocky Mountains. He obtains a loan and purchases the necessary land, facilities, advertising, and five helicopters for his business. What important factor of production has he overlooked in creating his business?
A) Equipment
B) Capital
C) Labor
D) Entrepreneurship
E) Natural resources

Question

Quizplus · Accepted Answer

Matt Newell has purchased equipment and capital (facilities) for his business, and he is providing the entrepreneurship (innovation and risk-taking) necessary to start and operate the business. However, he has overlooked the need for labor to operate the helicopters and provide customer service. Without employees, his business cannot function.

Matt Newell, a Former Air Force Pilot, Decides to Operate