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  2. To produce in economics, you need to consider the following factors1234:
    1. Understand the principles by which a business firm decides how much of each commodity it will produce.
    2. Consider the factors of production: land, labor, capital, and entrepreneurship.
    3. Recognize that using scarce resources to produce one thing requires giving up another.
    4. Economies must decide what to produce, how to produce it, and who will receive what is produced.
    Learn more:
    theory of production, in economics, an effort to explain the principles by which a business firm decides how much of each commodity that it sells (its “outputs” or “products”) it will produce, and how much of each kind of labour, raw material, fixed capital good, etc., that it employs (its “inputs” or “factors of production”) it will use.
    www.britannica.com/money/theory-of-production
    Factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.
    www.stlouisfed.org/education/economic-lowdown-p…
    Using the economy’s scarce resources to produce one thing requires giving up another. Producing better education, for example, may require cutting back on other services, such as health care. A decision to preserve a wilderness area requires giving up other uses of the land. Every society must decide what it will produce with its scarce resources.
    open.lib.umn.edu/principleseconomics/chapter/1-1 …
    Due to the economic problem of wants exceeding resources, economies have to decide what to produce, how to produce it and who will receive what is produced. What to produce, how to produce and who will receive what is produced are sometimes referred to as the three basic questions which all economies have to answer.
    assets.cambridge.org/97813166/38095/excerpt/978…
     
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