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Factors of Production

AB
SupramarginalProfitable
MarginalBreaking Even
SubmarginalLosing money
LandFound in nature
LaborHuman input to production
CapitalMan-made inputs to production
If used efficiently, land earnsRent
If used efficiently, labor earnsWage
If used efficiently, capital earnsInterest
Fixed CostsDo not change with changes in output
Variable CostsChanges as production levels change.
To earn a return, the factors of production must be used:Efficiently


York High School
York, NE

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