ECN 102 Lecture Notes - Lecture 12: Production Function, Division Of Labour
Document Summary
Production refers to the transformation of input into an output or outputs. The agent that aids the process of production is referred to as the firm. A firm is a single entity which transforms inputs into output and a group of firms producing a homogeneous product is referred to as an industry. Inputs in production are referred as factors of production. The reward is wage and salary: entrepreneurship: refers to the ownership of the process of production. An entrepreneur takes responsibility of all the risks involved. He acts as the organizer of the other factors of production, the reward them takes responsibility for profits or loss the reward is profit or losses. This is production for domestic or private use /production not for sale. It is production is based on division of labour (specialization). Division of labour /specialization is the concentration of labour on a particular skill.
