a level economics Factors of Production Watch
bigger factory = increase in land
i.e. more estate
bigger factory = increase in capital
i.e. more human-aid inputs to production process
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.