What is Land
Land as factor of production includes not only area of the earth surface but all resources that are a gift of nature as mineral deposits.
Features of Land
- Supply is strictly limited in quantity (has alternative uses);
- Imperishable-resources used become commodity;
- Immoveable-site cannot be transferred
Productivity of Land
The Productivity of land depends upon
- Improvements and/or developments
- Geographical situations
- Situation related to population and markets
- Nature of surface
In advanced economies most of the this factor of production has become appropriated and is owned by someone as an asset. Some modern economists treat land as factor of production as a specific form of capital.