- Land (including all natural resources),
- Labor (including all human resources),
- Capital (including all man-made resources), and
- Enterprise (which brings all the previous resources together for production).
These factors are classified also as management, machines, materials, and money (this, the 4 Ms), or other such nomenclature. More recently, knowledge has come to be recognized as distinct from labor, and as a factor of production in its own right.
Use this term in a sentence
Phil tried to make his new business a great success, but the many different factors of production led to it ultimately failing.
The management team that was hired decided to change how the machine was being made after they analyzed the factors of production.
In my economics class we analyzed the factors of production to best understand how this product relates to the market.