Final answer:
Land is considered a resource because it is used to produce things, such as using the natural resources that are found in nature. The valuation of land as a resource depends on our ability to utilize it effectively in production. The cost and usability of land are significant in the context of industrial site location analysis and business profitability.
Step-by-step explanation:
Land is considered a resource because it is used to produce things. From a factors of production perspective, land encompasses not just the physical space but also the natural resources that are found in nature and are used for the production of goods and services. Whether it is the material wealth from a piece of land, such as the trees for lumber, or the soil quality that supports agriculture, the land holds the natural resources that we utilize in various ways.
Over time, as our knowledge and technology have advanced, different materials and substances have been recognized as resources due to our ability to harness them. For instance, oil became a valuable resource when we developed methods to refine it. Therefore, the assertion that land is a resource on our capacity to use its offerings productively in creating new goods and services.
The cost of land and accessibility to natural resources are critical factors in industrial location analysis, which greatly affect business profitability. Factories often seek locations where the land is affordable and where there is ease of access to needed resources, illustrating the importance of land as a factor of production. This underscores the concept that land, as a resource, has economic value based not just on its existence, but on its utility in producing other desirable outcomes.