How Are Factors Of Production Are Allocated In The Economy?


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Yasir Baqar Profile
Yasir Baqar answered
As you know about four factors of production i.e. Land, Labour, Capital, Organization or entrepreneur.    Labour is the human power applying to land to get some output and by selling that output Rent of that land, interest of that capital, wages of that labour and Organization or entrepreneur's profit is paid.    So, each factor has it's own reward in the form of rent, wages, interest and profit of organization.

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