Finally, the lack of most additives to enhance the fermentation process reduces the cost of factor inputs while also producing a virtually unadulterated product.

The supply side equation (from (6-16)) is where is a measure of capital intensity defined in terms of physical factor inputs.

It has been observed that a high volume of trade occurs among regions even with access to a similar technology and mix of factor inputs, including high-income countries.

Profit includes the income of the entrepreneur - the businessman who combines factor inputs to produce a good or service.

In equilibrium, the ratio of factor inputs supplied each year must equal the ratio of factor inputs demanded.

Variations in the endowment and rate at which some of these factor inputs can be increased influence each country's economic growth rate.

It is possible to measure technical change as the change in output per unit of factor input.

Then we would see that the profit of the firm is depended on factor prices and factor inputs.

In the long run all factor inputs are variable at the discretion of management.

It assumes that other factor inputs (if they are used in the process) are held constant.