How does a business owner decide whether to use more capital equipment or more labor? Describe ways that factors of production may inhibit growth.

3. What will happen to supply (production) if the cost of the factors of production increase? What steps might a business owner take to try to keep the business profit the same?

4. If production costs decrease in a particular industry (say a barrel of oil decreases significantly in price), how will industry wide supply be affected?

5. Share a small business idea and elaborate upon why you think it would be successful or

Question

How does a business owner decide whether to use more capital equipment or more labor?  Describe ways that factors of production may inhibit growth. 
 
3.    What will happen to supply (production) if the cost of the factors of production increase?  What steps might a business owner take to try to keep the business profit the same?  
 
4.    If production costs decrease in a particular industry (say a barrel of oil decreases significantly in price), how will industry wide supply be affected?  
 
5.    Share a  small business idea and elaborate upon why you think it would be successful or