Question

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?

Answer 1

The answer is capital.

Answer 2

I think one factor of production the company needs to address most closely when making its decision to expand is the land factor because the company will be in debt if they have expanded to an area where no one is patronizing their product or keep on expanding without thinking or surveying the area. They will keep on paying rental payments, but the return of money is not that good.