Write a paper discussing factors of production. In a one-page (250-word) documen

Question

Write a paper discussing factors of production. In a one-page (250-word) document, address the following questions: How would you determine the demand for a factor of production? What factors influence the supply and demand for labor? Examine how those factors impact market demand for labor. How do labor unions try to increase the demand for labor? What has made labor unions such an integral part of the workforce? What is the difference between the rates of return for a renewable and nonrenewable resource? How do the rates of return on capital and land differ between a renewable and nonrenewable resource? How does the growing demand for food. fuel, and export affect the market for land? Save and submit your assignment. When you have completed your assignment, save a copy for yourself in an easily accessible place and submit a copy to your instructor.

Explanation / Answer

1. To produce an output, various factors of production like land, labor, capital, entrepreneur are used. These factors are used in the production of commodity so there demand depends upon the demand of final good. When demand of a particular good increases then demand of all those factors which are used in the production of that commodity are also increases.

2. Supply and demand of labor is influenced by the wage rate, educational qualification, globalisation, etc. When wage rate increases then demand of labor decreases while supply of labor increases and vice-versa. Globalisation leads to establishment of many MNC's and due to this demand of labor increases in the market. Demand of labor is also influenced by the education level of the labor as in the production of commodity, sometimes sophisticated technology are used and which is only used by the educated person. So, market demand of labor is get affected due to all these factors.

5. When demand of food, fuel, export rises then demand of its factor of production i.e. land also rises as land is used for the production of food products. So, increase in demand of food means increase in the demand of land. Increase in exports means more production is required so more land is needed. This increased demand increases the price of land or rent paid to land owners. Increase in the price of factor of production increases the price of final goods i.e. food and as a result demand decreases.

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