Supplies of factors of production depend upon characteristics of the factors and the preferences of their owners.

Question

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Factors of production such as land, labor, capital, and entrepreneurship are owned by individuals or businesses who make decisions on supplying them based on factors such as availability, cost, demand, and personal preferences. Therefore, the supply of factors of production is influenced by the characteristics of the factors as well as the decisions of their owners.

Supplies of Factors of Production Depend Upon Characteristics of the Factors