Which of the following is considered a firm's "factor of production"?
A) Money or cash balances of the firm
B) The firm's shares of common stock
C) U.S. Treasury bonds owned by the firm
D) The office building occupied by the firm

Question

Quizplus · Accepted Answer

As a factor of production is defined as an input required to produce goods or services, the office building occupied by the firm would be the only relevant choice out of the options given as it is a physical asset that facilitates the production process. Money, shares of common stock, and U.S. Treasury bonds are financial assets that do not directly contribute to the production process.

Which of the Following Is Considered a Firm's "Factor of Production