THE PRODUCTION PROCESS :THE BEHAVIOR OF PROFIT-MAXIMIZING FIRMS THE BEHAVIOR OF PROFIT-MAXIMIZING FIRMS Production : The process by which inputs are combined‚transformed‚and turned into outputs. Firm : An organization that comes into being when a person or group of people decides to produce a good or services to made a perceived demand Three decisions that all firms must make: 1. How much output to supply 2. How to produce that output 3. How much of each input to demand a) PROFITS AND ECONOMIC
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To understand how growth can occur‚ we need to consider the factors of production. Economists observe that in the production of any good‚ four factors of production are involved. These are 1. Land The physical land‚ but also comprising all the natural resources on the earth‚ below the earth or in the atmosphere. There is a distinction between renewable and non-renewable resources. Renewable resources are those that can be used and replaced. For example‚ water in a lake can be used‚ but can
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1. Briefly describe salt production from brine production to finished round cans. Salt is produce by drilling the surface for about 2‚400 feet below. Then‚ water is infused in this cave; thus‚ salt is dissolved with the water. The resulting brine is then pumped in the surface‚ boiled and when it evaporates‚ salt crystals will occur with some moisture but can be removed through the drying process. This happen continuously for about 6 weeks but there will come a point where output will reduce (normal
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1981-82. Average productivity increased to 2.3 tons per hectare (2.8 tons on irrigated farms) by 1983. By the late 1970s‚ the country had changed from a net importer to a net exporter of rice‚ albeit on a small scale. In the 1980s‚ however‚ rice production encountered problems. Average annual growth for 1980-85 declined to a mere 0.9 percent‚ as contrasted with 4.6 percent for the preceding fifteen years. Growth of value added in the rice industry also fell in the 1980s. Tropical storms and droughts
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PRODUCTION THEORY AND THEORY OF COSTS Production and Production Theory Production refers to the transformation of inputs into outputs (or products) An input is a resource that a firm uses in its production process for the purpose of creating a good or service. Most resources are lumped into three categories: - Land - Labor - Capital The two kinds of inputs: Fixed vs. Variable Inputs Fixed inputs -resources used at a constant amount in the production of a commodity. Variable inputs
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cadbury plan their production process by using a time series method as this helps Cadbury to accurately A1: An evaluation of the effectiveness of the techniques used by the business to plan production and product development Cadbury plan their production process by using a time series method as this helps Cadbury to accurately produce the needed amount of chocolate at the correct period of time. A time series shows historical data that can be used and analysed to predict future
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COST OF PRODUCTION CONTENTS 1. Introduction 2. Types of costs 3.1 Opportunity‚ implicit and explicit costs 3.2 Fixed and variable costs 3.3 Average costs 3. Types of cost curves 4.4 Marginal cost curve 4.5 Average cost curves 4. Costs in Short run and in the Long run 5.6 Short run 5.7 Long run 5.8 Economies of scale 5. Cost analysis in the real world 6.9 Economies of scope 6.10 Experiential
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PRODUCTION Production Creation of Utilities Utility: want satisfying capacity of a commodity Types of utilities: T f ili i Form utility Place utility Time utility Possession utility Service utility Knowledge utility The Production Function The production function refers to the physical relationship between the inputs or resources of a firm and their output of goods and services at a given period of time. time. The production function is dependent on different time frames. Firms can produce
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Globalisation of Production Introduction Because of the process of globalisation‚ the production activities of firms have become more dispersive. This essay will introduce situation of globalisation of production since 1980s‚ explore the relationship between governance of a global value chain and the prospects for upgrading in a developing country‚ identify the factors a firm should consider about the location of its production facilities and analyse influence of a heavy reliance on FDI to developing
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Development Board 4. Functions Of the Board 5. Products 6. Production and Marketing 7. Conclusion Introduction… Coconut‚ ‘Cocus nucifera linn’‚ the most important‚ ancient and useful of the tropical palms‚ has been cultivated in India from the time immemorial. Because of the economic importance‚ this plantation crop is grown in more than 90 countries across the world and India ranks third in production of coconut. Traditionally‚ the economic importance of coconut was laid
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