A factor of production that includes all the mental and phys

A factor of production that includes all the mental and physical effort humans put into producing goods and services the likes and dislikes of the decision maker

Solution

(1) Entrepreneurial skill - willingness & ability to organize factors of production

(2) Rational choice - Assumption that people will act in order to be better-off

(3) Forward thinking decision maker - Considers the future costs & benefits

(4) Profit = Revenue - Cost [It\'s assumed that all firms are profit maximizers]

(5) Law of diminishing marginal benefit - Principle that marginal benefit fails (doesn\'t increase) as more & more of the action is undertaken.