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Question
tom novak has just purchased a new building and equipment he plans to use to manufacture a secret recipe he has for a craft beer. to which of the following factors of production do the purchases correspond? capital technology entrepreneurial talent intellectual property i dont know yet
Factors of production include capital (physical assets for production), technology (methods/equipment), entrepreneurial talent (management/innovation), and intellectual property (intangible creations). Tom's purchases of a building and equipment are physical assets used in production, which fall under capital. Technology refers more to processes/methods, entrepreneurial talent is about the person's skills, and intellectual property is intangible (like the recipe, not the building/equipment). So the purchases correspond to capital.
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A. Capital