C Describe a Firms Factors of Production Flashcards
Factors of Production
The resources a firm uses to generate output
Factors of Production
The resources a firm uses to generate output
Factors of Production
The resources a firm uses to generate output
Land
Where the business facilities are located
Labor
All workers (unskilled labor to top management)
Capital
Physical capital or PPE (manufacturing facilities, equipment, facilities)
Material
Inputs into the productive process (raw materials [iron, ore, water], manufactured inputs [wire, microprocessors])
Production Function
Q=f(K,L)
An increase in product; an increase in total product: happens per marginal product of labor (additional output)
DMP or DMR occurs at points where output begins to decrease per additional worker.
MP increasing indicates a positive slope, beyond that where additional output is negative the production function slopes downward.
Land
Where the business facilities are located
Labor
All workers (unskilled labor to top management)
Capital
Physical capital or PPE (manufacturing facilities, equipment, facilities)
Material
Inputs into the productive process (raw materials [iron, ore, water], manufactured inputs [wire, microprocessors])
Production Function
Q=f(K,L)
An increase in product; an increase in total product: happens per marginal product of labor (additional output)
DMP or DMR occurs at points where output begins to decrease per additional worker.
MP increasing indicates a positive slope, beyond that where additional output is negative the production function slopes downward.
Land
Where the business facilities are located
Labor
All workers (unskilled labor to top management)