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Explain growth of the global economy?
There are only three factors that constitute and contribute to economic growth: Labor, Capital, Technology.
Discuss Production function with two variable inputs?
Long Run Production With Variable Inputs:The long run is the lengthy period of time during with all inputs can be varied. There are no fixed output in the long run. All factors of production are variable inputs.We now analyze production function by allowing two factors say labor and capital to very while all others are held constant. With both factors are variable, a firm can produce a given level of output by using more labor and less capital or a greater amount of capital and less labor or moderate amounts of both. A firm continues to substitute one input for another while continuing to produce the same level of output.If two inputs say labor and capital are allowed to vary, the resulting production function can be illustrated in the figure 12(a).Diagram/Figure:In this figure each curve (called an isoquant) represents a different level of output. The curves which lie higher and to the right represent greater output levels than curves which are lower and to the left.For example, point D represents a higher output level of 250 units than point A or B which shows output level of 150 units.The curve isoquant which represents 150 units of output illustrate that the same level of output (150 units) can be produced with different combinations of labor and capital. Combination of labor and capital represented by A, can employ OL1 quantity of labor and OC1 units of capital to produce 150 units of output.The combination of labor and capital represented by point B will use only OL2 units of labor and OC1 of capital to produce the same level of output. Thus, if a country has surplus labor and less capital, it may use the combination of labor and capital represented by point A. In case the country has abundant capital and less labor, it might produce at point B. The isoquants through points A and B shows all the different combinations of labor and capita that can be used to produce 150 units of output.By ArkaBrata Bandyapadhyay,B.Sc Biotech, MBA.aki-d-biotechnologist-mba@hotmail.com also available in FB as "Aki D Amorous"
Why money is not consider as a factor of a production?
Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
What are two types of payments of factors of production?
There arent only 2 payments of production and it depends on which factor of production you're talking about. For Labour - the payment to the factor is Wages, For Capital - Interest For land - Rent Entrepreneurship - Profits These payments to the factos of production are provided by the firms. M x
What factors of production will be used and how?
In business economics, we have 3 factors of production and i am gonna help you elaborate each of them and how they can be used.1) Land - This a fixed factor of production and can be used by cultivating on them (Agricultural production), or building on them to house other factors of production (e.g. human beings and machines). This factor of production is said to be fixed because the amount of land you have cannot be changed unless you purchase more and it can only be used to produce a fixed amount of goods per time. for instance, if you have 1 hectares of land and you cultivate on it, you cant cultivate any more once the land is fully cultivated.2) Labour - also know as men or labourers used for production or workforce. it is used for production purposes by employing them to undertake certain production tasks or activities. in modern day business, labour can also be a machine e.g. robots that are used to produce certain goods.3) Capital - also known as money. the capital involved in production can be in the form of cash or human capital (Knowledge, management ability, expertise or experience). the cash capital is used to pay labourers and maintain other factors of production (e.g. machines), while human capital is used to reduce cost of production associated with acquiring that particular capital (for instance, we reduce the cost of employing a skilled manager if we are able to train our own manager and as he will still be paid a lesser money than a skilled manager).so it can be summarized as, land is used for housing the production process, labour is used for performing the production on land, while capital is used to maintain other factors of production (land and labour)..
Which factors of production are used by a dog walker to provide a service that has value?
labor only
Explain growth of the global economy?
There are only three factors that constitute and contribute to economic growth: Labor, Capital, Technology.
Discuss Production function with two variable inputs?
Long Run Production With Variable Inputs:The long run is the lengthy period of time during with all inputs can be varied. There are no fixed output in the long run. All factors of production are variable inputs.We now analyze production function by allowing two factors say labor and capital to very while all others are held constant. With both factors are variable, a firm can produce a given level of output by using more labor and less capital or a greater amount of capital and less labor or moderate amounts of both. A firm continues to substitute one input for another while continuing to produce the same level of output.If two inputs say labor and capital are allowed to vary, the resulting production function can be illustrated in the figure 12(a).Diagram/Figure:In this figure each curve (called an isoquant) represents a different level of output. The curves which lie higher and to the right represent greater output levels than curves which are lower and to the left.For example, point D represents a higher output level of 250 units than point A or B which shows output level of 150 units.The curve isoquant which represents 150 units of output illustrate that the same level of output (150 units) can be produced with different combinations of labor and capital. Combination of labor and capital represented by A, can employ OL1 quantity of labor and OC1 units of capital to produce 150 units of output.The combination of labor and capital represented by point B will use only OL2 units of labor and OC1 of capital to produce the same level of output. Thus, if a country has surplus labor and less capital, it may use the combination of labor and capital represented by point A. In case the country has abundant capital and less labor, it might produce at point B. The isoquants through points A and B shows all the different combinations of labor and capita that can be used to produce 150 units of output.By ArkaBrata Bandyapadhyay,B.Sc Biotech, MBA.aki-d-biotechnologist-mba@hotmail.com also available in FB as "Aki D Amorous"
Why money is not consider as a factor of a production?
Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
What are two types of payments of factors of production?
There arent only 2 payments of production and it depends on which factor of production you're talking about. For Labour - the payment to the factor is Wages, For Capital - Interest For land - Rent Entrepreneurship - Profits These payments to the factos of production are provided by the firms. M x
When a firm's only variable input is labor then what does the slope of the production function measures?
marginal product of labor
What factors of production will be used and how?
In business economics, we have 3 factors of production and i am gonna help you elaborate each of them and how they can be used.1) Land - This a fixed factor of production and can be used by cultivating on them (Agricultural production), or building on them to house other factors of production (e.g. human beings and machines). This factor of production is said to be fixed because the amount of land you have cannot be changed unless you purchase more and it can only be used to produce a fixed amount of goods per time. for instance, if you have 1 hectares of land and you cultivate on it, you cant cultivate any more once the land is fully cultivated.2) Labour - also know as men or labourers used for production or workforce. it is used for production purposes by employing them to undertake certain production tasks or activities. in modern day business, labour can also be a machine e.g. robots that are used to produce certain goods.3) Capital - also known as money. the capital involved in production can be in the form of cash or human capital (Knowledge, management ability, expertise or experience). the cash capital is used to pay labourers and maintain other factors of production (e.g. machines), while human capital is used to reduce cost of production associated with acquiring that particular capital (for instance, we reduce the cost of employing a skilled manager if we are able to train our own manager and as he will still be paid a lesser money than a skilled manager).so it can be summarized as, land is used for housing the production process, labour is used for performing the production on land, while capital is used to maintain other factors of production (land and labour)..
What is a production period that allows changes only in variable inputs?
This production period is called the short run production period. This means that the amount of capital in the firm is fixed and cannot change because it takes time for the firm to receive ordered capital. In this situation the firm must change labor and materials (variable inputs) in order to maximize profits. The opposite of the short run production period is the long run production period. In the long run all inputs are flexible and the firm can theoretically maximize profits at any level of capital.
What two kinds of changes in the capital stock can improve labor productivity?
An increase in the quantity of capital per worker, which is reflected by a movement along the per-worker production function. According to Simon Kuznets, changes in the quantities of labor and capital account for only one-tenth of the increase in economic growthAn improvement in the quality of capital per worker, and it is is reflected by technological change that rotates the curve upward. It accounts for nine-tenths of the increase in economic growth.
When factors of production perform only task they can do more than other?
Specialization is when factors of production perform only tasks they can do more efficiently than others. This is argued to maximize efficiency, but also increases interdependence among aspects of production.
Which factor of production are used by a dog walker to provide a service that has value?
labor only
What is indivisiblity of factors?
The indivisibility of factors refer to the difficulty of using only part of a plant for profitable production.
