Read the following scenario.



A clothing company wants to expand into new regions. It is looking at an urban area with a large number of vacant warehouses. The population is made up of people with average educations and a lower standard of living. The company is experiencing slower sales but has hopes that product will take off and be successful.



Which of the factors of production will the company need to address most closely when making its decision to expand?

land
capital
land and labor
labor and capital