11. A variable factor of production is one whose usage rate can be changed easily. 12. However, the main factors of production are capital and labor. 13. Later Entrepreneurship was added as the fourth factor of production . 14. Being a locational value associated with private appropriation of any natural factor of production . 15. Labor is not another " factor of production " on par with land and capital. 16. Modern economics theorises productivity in terms of the marginal product of the factors of production . 17. Land and, more importantly, good agricultural land-like any other factor of production -is subject to scarcity. 18. Thus, the factors of production were as sensitive to marginal utility as consumer goods themselves. 19. Hence the after-tax payments to each factor of production would be the same in both sectors. 20. These act as a cheaper factor of production than is available to factories in richer countries.
