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Why are the factors of production considered to be scarce resources?

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Response

One of the main characteristics of factors of production is their scarce nature within the market. Having a restricted stock of these inputs limits the ability of companies to meet all the desires of their consumers.

Step-by-step explanation

Within the core land, labor and capital we can obtain all the inputs necessary for the production of a good or service.

However all these resources are scarce on our planet, and because they are restricted and have a high economic demand, the prices charged for obtaining these inputs are usually not low.

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