Fisheries Economics

3.1.2. Factors of production

Land, Labour, Capital and Organisation are the four factors of production. These are required in almost every production process. These are used as basic ‘inputs’.

These four essential inputs needed to undertake production are called factors of production.

The factors of production have a price. They are not free goods and one has to pay for them. The payments made for the use of the four factors of production are known as rewards.

Factor Reward

Land : Rent

Labour : Wage

Capital : Interest

Management : Profit