Question

Is it possible in the real world for an entrepreneur to operate a business in which all of the factors of production are always fully employed? Why or why not?

Answer 1

No,

Because we have a cyclical economy where it goes through recessions and booms.

It would be near impossible to always stay in a ‘boom’.

Answer 2

No, it is not possible. This is because producers, entrepreneurs and other economic actors need availability of factors of production to be able to appropriate them and use them for producing for their companies. For example, they need an unemployed worker to be able to employ him in their company so he produces for it; if unemployment did not exist, there could be no workers to perform the different tasks of the company.