MGTA01H3 Lecture 2: Factors of production (Chapter 2)
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MGTA01H3 Full Course Notes
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There are basic building blocks used to produce anything, in business, the building blocks are : Raw materials found in the ground, grown from earth, or harvested from nature. Every business needs at least one partner. Money, or machines and technologies that money can buy. With natural resources, labour and capital in a business the outcome is products. An organisation that relies on lots of labour is "labour intensive" A business that relies on natural resources is "resource intensive" A business that relies on lots and lots of money, technology and equipment is "capital intensive" " an attempt to explain something complicated, hard to understand, or hard to prove. " People motivated to take time, incur costs and take risks, to make something happen. If you understand the parts, you better understand the whole. Quantity, quality, and cost of factors determine quality, quantity and cost of products.
