Question

Considering the Factors of Production
Page 1Page 2
Factors of Production for The Shoe Hut



•$1,500 a month for rented space
•One additional employee needed
•$4,500 for inventory and equipment to make custom inserts

will require a less costly investment in labor.


will require less capital in the long term.


will probably require upgraded equipment and greater capital over the next five years.

Answer 1

I’m missing Page 2, so I can’t be certain which option each blank should name. Could you paste or describe Page 2 (the alternative plan) ?

If Page 1 is the in‑house custom‑insert plan you gave (rent $1,500/mo, one extra employee, $4,500 equipment) and Page 2 is an outsourcing/retail‑only option (buy ready‑made inserts instead of making them), then the best fits are:

- Page 2 (outsourcing/buying ready‑made inserts) will require a less costly investment in labor.
- Page 2 will require less capital in the long term.
- Page 1 (making custom inserts in‑house) will probably require upgraded equipment and greater capital over the next five years.

If that doesn’t match your Page 2, paste it and I’ll fill the blanks exactly.