Question

Acme Furniture Manufacturers has just purchased a large supply of exotic lumber that is ready for use in their new line of furniture. This purchase BEST represents which of the factors of production?

Answer 1

Land

Step-by-step explanation:

Land represent the best factor of production in the given scenario of purchase.

There are four factor of production:

1) Land: It provide space or place to produce goods and service, however, cost has to be incurred by the firm in the form of rent or lease amount.

2) labor: It is a variable factor of production and it is measured by the amount of work done by human. Wages are paid in return of work done by labor.

3) Capital: The amount incurred in establishing the business or production house.

4) Entrepreneurship: It is the person who manage all other factor of production or the one who establish the business and operating it.