A clothing company wants to expand into new regions. It is looking at an urban area with a large number of vacant warehouses. The population is made up of people with average educations and a lower standard of living . The company is experiencing slower sales but has hopes that product will take off and be successful. which of the factors of production will the company need to address most closely when making its decision to expand?
a.land
b. capital
c.land and labor
d.labor and capital
The correct answer to this question is C - the factor of production that the company will need to closely address will be land and labor. This is due to the fact that theyw ill need to consider the new area that they are expanding into and whether they can sensibly fill it with their budget, as well as the population of the area they are moving into and whether or not they will have a large body of potential new staff within it.
