Answer to Question #91458 in Economics for Jacobi

Question

Gloria wants to open her own restaurant. She has already purchased a building and raised enough cash to purchase the furniture, tools, and equipment required. She has also hired waitstaff and some cooks. However, she is unable to find a person who will be able to come up with interesting recipes every day. What type of factor of production is Gloria lacking?

Answer 1

In the described case Gloria is lacking human capital as the factor of production.