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what are the requirement for the production of goods and services.explain them
First, it is important to delve on the resources of production. Agrarian industries require soil and shovel to produce, while industrial companies require factories. The resources of production pertains to the things used to create commodities.

Therefore,  the different factors of production used to be able to come up with the finished goods which include labor, land and capital as the basic. Additionally, technology and entrepreneurship are also playing essential roles in production. These five factors are needed to come up with products or services.

Labor pertains to the human resources of the business. The people are the company’ greatest resource because they look after the other components of production. Human labor could either be technical or marketing expertise.

Land pertains to the natural resources used in production such as water, soil for farming, minerals, air, flora and fauna. Shell craft industries make use of shells to create wonderful accessories. Meat shops sell pork, chicken and beef. These industries make use of the natural resources around them.

Capital refers to human-made goods that are to be used in production. Machinery, building, shares of stocks, equipment and others all fall under this category. Originally, capital only pertains to money or gold.

Entrepreneurship is a fourth factor in production because of their coordinating function. They are the ones who look after the other factors of production: land, labor, capital and technology in such a way that it can generate profit. Entrepreneurs invest the other factors in order to come up with products and services that would entice customers to buy.

Technology or information technology forms part of intellectual capital. It is fast becoming a huge factor for all kinds of businesses be they manufacturing, retail, agricultural or service industries. The advances in our technology enables the production of goods and services faster and easier. Computers are doing the jobs that people needed to do before.


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