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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is an Immobile Factor of Production? Is it an Example of Market Failure? -Make an Example with Land and Capital

Author: eric_galvao



Answer:

-A Factor of Production that can't be Easily moved to another Area of the Economy. This means there's an Inefficient Use of Resources - Unused or Underused. This means there's a Market Failure -Land can't be Moved from 1 Place to Another, and it may be Limited in what it can Do - Only can grow Wheat -Capital can be Immobile due to the Sheer Size - Factories or Nuclear Reactors [Specialist Nature]


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