Question

what is the scarce factor of production in palampur?

Answer 1

It is the land which is the scarce factor of production in Palampur.

In Palampur, all land practically has been brought under cultivation , no land has been left unused or not put under cultivation. No piece of land in the village is left idle. As a result there is no further scope of expanding land under cultivation. The land existing is also unequally distributed in relation to the labour available which indeed is in abundance.