factors of production

There are 4 basic factor of production and their rewards which include Land, Labour, Capital and Entrepreneur.

Specific and nonspecific Factors of productions

These are those that can be used only for one purpose e.g. a shaving machine, corn mill, railway line.

None-specific factors of production on the other hand can be used for many purpose .g. raw materials, corn, a piece of land, cutlass.

LAND

Land as a factor of production

Land refers to all natural resources that are used in the production of goods and services they include water forest resources, mineral resources, mineral deposits etc. the reward of land is Rent.

Characteristics of land

Land is a free gift of nature. However, land lords receive a payment for owing it called rent.
Land is fixed in supply: this means that man cannot do anything to ass what is made available by nature, he can only transform land from one form to another.
Land is not uniformly distributed: land is heterogeneous, this means the quality of land varies from place to place and that is why the output of land varies.
The reward to owners of land is rent.
Land is geographically immobile but occupationally mobile i.e. a piece of land cannot be carried from one place to another but can only be transformed from one occupation to another e.g. a piece of land used for farming can be changed into a building seize to a football field
Land is subjected to the law of diminishing returns or the law of variable proportions. The la states that when successive unit of a variable factor like labour is added to fixed factor like land, marginal product will first rise and then falls. When marginal product falls, it mean diminishing returns has set in.
Free gift of nature. However, land lords receive a payment for owing it called rent.
Land is fixed in supply: this means that man cannot do anything to ass what is made available by nature, he can only transform land from one form to another.
Land is not uniformly distributed: land is heterogeneous, this means the quality of land varies from place to place and that is why the output of land varies.
The reward to owners of land is rent.
Land is geographically immobile but occupationally mobile i.e. a piece of land cannot be carried from one place to another but can only be transformed from one occupation to another e.g. a piece of land used for farming can be changed into a building seize to a football field
Land is subjected to the law of diminishing returns or the law of variable proportions. The la states that when successive unit of a variable factor like labour is added to fixed factor like land, marginal product will first rise and then falls. When marginal product falls, it mean diminishing returns has set in.