production and costs concepts
Post on 30-Jun-2015
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PRODUCTIONAND
COST CONCEPTS
BASIC PRODUCTION CONCEPTS
Capital
Entrepreneurship
Land
Labor
Manufacturing
Assembly
Processing
Service operation
Finished
products
Semi-process
ed product
s
Services
Production Inputs
Production Process
Production Outputs
Point of Comparison
Fixed Factors
Variable Factors
divisibility Indivisible large unit
Divisible small unit
Necessity in
production
example
Supplementary: even in their
absence some amount of
production can be carried out
Plant, machinery,
manager, land factory
premises, etc.
Without these
factors no production
can be carried out
Labor, raw materials, transport, freight etc
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