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Question
Analyse the images below and identify the factors of production and explain any one characteristic of the same.
Solution
The above images explain the factor of production is Capital.
Characteristic of Capital:
- Durability: A key characteristic of capital is its durability. Capital goods are used repeatedly over many production cycles. Unlike consumable goods, which are used up when producing a product, capital goods like machinery (e.g., the excavator) endure over time and are used repeatedly in the production of other goods. This durability is crucial as it spreads the expense of the equipment over many periods, making it a fundamental aspect of sustained production capacity.
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