In most businesses, the most costly factor of production is Human capital. Thus the correct answer is D.
Business is referred to as an economic activity that involves the trading of goods and services refers to buying and selling of commodities in exchange for money with the objective of maximization of profit.
There are many activities included in business that involve the production of goods, assembly, distribution, advertising, and promotion to make awareness regarding the commodities to make available to customers.
Human capital considers a costly factor of production as it plays important role in manufacturing. Physical capital cannot fulfill business operations without the support of human capital. Human resources consist of the intelligence in completing the work with efficiency and timeliness by coordinating with other factors.
Therefore, option D is appropriate.
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