Question

Mr. green is opening a new bakery. he has purchased an industrial oven which can accommodate twenty loaves of bread at a time. this oven represents which factor of production?

Answer 1

Capital - An oven has been designed and produced to produce bakery products. Capital goods include machinery, tools, equipment, buildings, and technology. Mr. Green must also constantly upgrade his oven to maintain a competitive edge and operate efficiently in the market. Without the oven, Mr. Green cannot also operate is bakery.