Factors of Production
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One day, Dan the Entrepreneur noticed a distinct lack of baked goods stores in his town. He decided to open a new one himself.
Realizing he needed space and materials from the land, he bought both.
Because he needed physical capital in the form of money to do this, he took out a loan.
Dan did not have the time or skills to bake on his own, so he hired employees with the right human capital of cooking ability.
Finally, made sure his employees were paid for their labor working for him all day.
The new bakery quickly became a staple of the community, a regular stop for all sorts of people.
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