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Explain the concepts of Price of …

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Explain the concepts of Price of factors of production

Posted by Karan Bhardwaj 6 years, 10 months ago

CBSE > Class 11 > Economics

1 answers

Yaser Siddiquee 6 years, 10 months ago

Factor pricing is associated with the prices that an entrepreneur pays to avail the services rendered by the factors of production. For example, an entrepreneur needs to pay wages to labor, rents for availing land, and interests for capital so that he/she can earn maximum profit. These factors of production directly affect the production process of an organization.

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