Answer to Question #318835 in Microeconomics for samson

Question

1.   Consider all the factors of production: labor, natural resources, capital, entrepreneurs, technology, and knowledge. Is each resource a vital part of the school you attend or the company for which you work? Which factors do you believe are most important to the goods and services provided by the organization?

The vital of the school you attend for which work is Knowledge

The  factor that is most is capital

2 .In Rwanda local farmers manage small plots of land for subsistence farming. However, some have benefited by selling pineapples at an agreed fixed price to an exporter. The exporter provides finances, training, fertilizers and machinery and even building materials for the farmer’s homes.  Explain the benefits which may be gained by the local community in Rwanda from the project.

·        By partnering with an exporter local farmers benefit in terms of their own capacity building and decreasing production costs.

Answer 1

For the company with which I work, all these factors are very important. I work in a fruit processing plant.

Labor - Both skilled and skilled labor are important inputs in fruit processing.

Natural resources- Natural resources such as water and the fruits are the materials used in the processing for value addition.

Capital- For the initial stages of this company, the entrepreneurs put in a lot of capital in purchasing machines and paying workers before the company broke even.

Entrepreneurs- People with vision for the business came together and started the business off.

Technology- The machines used in the production are part of the technology required.

Knowledge- Engineers, food nutritionists and machine operators use their knowledge to ensure that the production process is successful.

Explain the benefits which may be gained by the local community in Rwanda from the project.

From the project the factors of production will as a result be cheap hence

the benefits will include,

1. The workers will be more knowledgeable from the training
2. The cost of production will be low hence more supply to the market
3. There shall be a source of employment to the population.
4. The returns will be huge since they do not put their money in the production.