Final answer:
Capital is the factor of production that includes tools and equipment used by businesses, such as machinery and infrastructure, with the crucial involvement of entrepreneurs.
Explanation:
Capital is the factor of production that refers to the tools and equipment used by a business. This includes machinery, tools, and infrastructure necessary for production processes.
For example, factory buildings, vehicles, and plant machinery are all examples of capital goods that businesses utilize in their operations to produce goods and services for the market.
Entrepreneurs play a critical role in combining labor, capital, and natural resources efficiently to create value and drive economic growth.
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