9 Production and Division of labour Flashcards
1
Q
Define Piece rate
A
Amount of money that is paid for each item a worker produces.
2
Q
Define the division of labour
A
Breaking down the production process.
3
Q
Define specialization
A
Production of a limited range of goods
4
Q
Disadvantages of labour division and business
A
Specialisation may result in a loss of flexibility in the workplace.
5
Q
Define costs
A
Expenses that must be met when setting up a business.
6
Q
Define fixed costs
A
costs that do not vary with level of output.
7
Q
Define variable costs
A
Costs that change when output level change .TVC=VC X Q
8
Q
Define average costs and formula
A
Total cost divided by quantity produced
average cost of production is the cost of producing a single unit of output
9
Q
Formula for profit
A
Total revenue -total cost
