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. capitalc. land and labord. labor and capital

Question

Kendrick Leon

English

21 July, 12:07

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. capitalc. land and labord. labor and capital

+4

Answers (1)

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Mohammad · Answer 1

The area being inspected offers good land offer given the fact there are warehouses available and labor available because people has average education, but wont sale much in the area due to low people standard of living.

Hence the company needs to address: capital to ensure can sustain the co. until the sales ramp up.

Labor and cheap land is almost sure.