Read the following scenario. a clothing company wants to expand into new regions. it is looking at an urban area with very few vacant warehouses. the population is made up of people with average educations and a lower standard of living. the company is experiencing slower sales but has hopes that product will take off and be successful. which of the factors of production will the company need to address most closely when making its decision to expand? land capital land and labor labor and capital capital

the second answer is correct (b).

the production process is based on two main factors of production, labor and capital, which means machines, equipment, etc.

the location described suggests that there is manpower for the type of product that the company produces in this way, the company needs to turn their attentions to its facilities first, since there are not many lazy warehouses. allocation of capital it will use.

efficient production will be by the best combination of capital and labor. if the labor force is abundant, the company must analyze the capital that this labor will use in the productive process.

escalation means to increase in intensity, extent, or amount.

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