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Question: Starbucks is a worldwide brand that is known for creating a community coffee house feel with ethically sourced coffee. Let's look at the Factors of Production for Starbucks. The coffee chain needs land for the coffee shops, capital to purchase the coffee and the machinery to produce specialty coffee drinks, the labor of the baristas who have the knowledge of how to make the specialty drinks, and finally the entrepreneur Howard Schultz. Howard Schultz provided the last factor of production by being the first person to capitalize on a market for coffee houses and connecting among the other four factors of production.
In your original post, answer the following:
Now it's your turn. You own a donut shop right next door to Starbucks. Answer the following questions about your donut shop and the factors of production:
Explain (like the Starbucks example) how your donut shop would use the Factors of Production.Which of the following factors of production will be most important to your business? Explain why you choose this factor.LandLaborCapitalEntrepreneurshipKnowledge
According to your book, technology is part of the 'Knowledge' factor of production. Technology helps to increase the efficiency of the factors of production. How would you use technology in your donut shop?
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