<p>In layman terms the sentence says that entrepreneur, buys labor (hires employees), capital (invests in machines) and buys land, and then combines labor with machinery and land to create products.</p>
<p>For example, setting up a factory and telling employees what to do is an example of entrepreneur 'combining' different factors of production in order to produce some goods.</p>

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2022-07-16T10:08:17.947Z
@Asu you are welcome if this answer answered your question consider accepting it
1muflon1
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2022-07-16T10:08:42.973Z
He is called an agent because he acts on behalf of the enterprise,right?
Sam
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2022-07-16T10:11:02.113Z
@Asu agent is either 1. just generic term for anyone acting in some sort of model. Employee can be agent as well. 2. In some parts of econ that looks at principal agent problem agent is someone hired on a behalf of a principal to do something for the principal. In your case I think agent just refers to broad definition 1
1muflon1
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2022-07-16T09:54:12.833Z
2022-07-16T09:54:12.833Z
1muflon1
<p>“An entrepreneur is an agent who buys factors of production at certain prices in order <em>to combine them into a product</em> with a view to selling it at uncertain prices in future”.</p>

<economic-growth>
What is meaning of combining factors of production into products?
Sam
# What is meaning of combining factors of production into products?

(Asked by: username_0 on 2022-07-16)

“An entrepreneur is an agent who buys factors of production at certain prices in order *to combine them into a product* with a view to selling it at uncertain prices in future”.

**Tags:** economic-growth


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## 1 answers

### Answer by username_1 on 2022-07-16. Score: 1 | Accepted answer

In layman terms the sentence says that entrepreneur, buys labor (hires employees), capital (invests in machines) and buys land, and then combines labor with machinery and land to create products.

For example, setting up a factory and telling employees what to do is an example of entrepreneur 'combining' different factors of production in order to produce some goods.

> **Comments:**
> **username_1**: @Asu you are welcome if this answer answered your question consider accepting it  
> **username_0**: He is called an agent because he acts on behalf of the enterprise,right?  
> **username_1**: @Asu agent is either 1. just generic term for anyone acting in some sort of model. Employee can be agent as well. 2. In some parts of econ that looks at principal agent problem agent is someone hired on a behalf of a principal to do something for the principal. In your case I think agent just refers to broad definition 1  

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