labor - power is capital as a factor of production.
labor - power is capital as a factor of production.
as a factor of production what is capital?
labor - power
as mentioned, recent authors have added to the classical list. for example, j. b. clark saw the co-ordinating function in production and distribution as being served by entrepreneurs; frank knight introduced managers who co-ordinate using their own money (financial capital) and the financial capital of others. in contrast, many economists today consider "human capital" (skills and education) as the fourth factor of production, with entrepreneurship as a form of human capital. yet others refer to intellectual capital. more recently, many have begun to see "social capital" as a factor, as contributing to production of goods and services.









































section::::a fourth factor?:entrepreneurship.
factors of production
distribution of national income is determined by factor payments (factor prices). factor payments include rent, wages, interest and profit. the prices for factor of production depends upon demand and supply of that particular factor of production. assume that the factors of production in the economy are fixed and hence the factor supply curve is vertical. equilibrium of factor payments is determined by the intersection of the downward-sloping factor demand curve and the vertical supply curve. the optimal factor payments are determined through their respective markets i.e. the market clearing prices of the factors of production. there are three major factor of production land, labor, capital.
factor payments