Production Functions is a relationship between inputs aspects of production and outputs production. Here briefly discuss on Factors of Production, there are three factors of production, they are Land (including all natural resources), Labor and Capital goods (machines, equipment, buildings). Here also discuss on Factor Prices. Prices of factors of production are: Wages, Rent (payment for the use of land), Interest (payment for the use of capital goods) and Profits (payment for entrepreneurship).
