5.1 Production Factors and production Function生产要素与生产函数 Key ldea Output depends on the amount of resources and how they are used. Different amounts and combinations of inputs will lead to different amounts of outputs. If output is to be produced efficiently, then inputs should be combined in the optimum proportions
5.1 Production Factors and production Function 生产要素与生产函数 Key Idea Output depends on the amount of resources and how they are used. Different amounts and combinations of inputs will lead to different amounts of outputs. If output is to be produced efficiently, then inputs should be combined in the optimum proportions
Definition Production The transformation of inputs into outputs by firms in order to earn profit(or meet some other objective) Factors of production(or resources) The inputs into the production of goods and services: labor, land and raw materials, and capital Labor all forms of human input both physical and mental, into current production Land and raw materials Inputs into production that are provided by nature: e.g. unimproved land and mineral deposits in the ground
Definition Production The transformation of inputs into outputs by firms in order to earn profit (or meet some other objective). Factors of production (or resources) The inputs into the production of goods and services: labor, land and raw materials, and capital. Labor All forms of human input, both physical and mental, into current production. Land and raw materials Inputs into production that are provided by nature: e.g. unimproved land and mineral deposits in the ground