hj!gz
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#1
Report Thread starter 4 weeks ago
#1
factories are obviously a capital factor of production

but, is
bigger factory = increase in land
i.e. more estate

OR
bigger factory = increase in capital
i.e. more human-aid inputs to production process
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Vardhan95
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#2
Report 3 weeks ago
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Hi good question

Look at the four factors of production:

1. Land: Any and all natural resources used in production.

2. Labour: Any physical or mental effort used in production.

3. Capital: Any man made goods used in production.

4. Enterprise: The willingness and ability to bring together the other factors of production, and bear the risks of it.

So a factory increasing would be an increase in land and capital if you need to buy new land, maybe the factory has unused space or a lot of spare capacity inside which is increased purely by adding machines and technology?

It depends on the situation. But since you specifically mentioned bigger, I guess it be an increase in land and capital.
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hj!gz
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Report Thread starter 3 weeks ago
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okay yeah, i was narrow-minded in thinking that only one factor of production would be affected

thanks!
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