Intro to Factors of Production
This note will cover the basics of Factors of Production - what they are, the rewards and relevant definitions.
Author:Krish Beachoo
Edu Level: Unit1
Date: Apr 8 2026 - 1:00 AM
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What are the Factors of Production / Resources / Inputs
There are 4 Factors of Production you need to know;
- Land / Natural Resources
- Labour / Human Resources
- Capital / Manufacturing Resources
- Entrepreneur / Enterprise
Define the term 'Production Function'
- The Production Function relates to INPUTS and OUTPUTS.
- The Production Function describes the technological relationship between the inputs the firm uses and the output the it produces.
Factor Inputs / Rewards / Cost Table
| Factor Inputs | Rewards | Cost of Production |
|---|---|---|
| Land | Rent | Rent |
| Labour | Wages/Salaries | Wages/Salaries |
| Capital | Interest | Interest |
| Entrepreneur | Profits | Losses |
Learn about the Short Run and Long Run in another note in our Econ Notebook!
Read Next
Market Equilibrium and Disequilibrium
Go to Content →Causes of a Change in Price (Demand & Supply)
Go to Content →Elasticity of Supply
Go to Content →Elasticity of Demand
Go to Content →
