#cfa-level-1 #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Factors of production, the inputs to the production of goods and services, include:
land, as in the site location of the business;
labor, which consists of the inputs of skilled and unskilled workers as well as the inputs of firms’ managers;
capital, which in this context refers to physical capital—such tangible goods as equipment, tools, and buildings. Capital goods are distinguished as inputs to production that are themselves produced goods; and
materials, which in this context refers to any goods the business buys as inputs to its production process.