| Term | Definition |
|---|
| Productivity | The rate of output or relationship between outputs and inputs |
| Production | The output of goods and services |
| Technology | Refers to the type of capital goods available to the workers and to the processes and methods of production |
| Specialisation | A worker, a region or a country concentrates on the production of one type of output and become skillful in the job |
| Diversification | Increasing the range of variety, such as when firm takes opver another firm in an unrelated industry and develop into an industrial combine or conglomerate |
| Diseconomies of Scale | Output increase beyond the level that minimises average cost. |
| Integration of businesses | Process by which firms merge or are taken over to create a much larger business |
| Division of Labour | Splitting of specialist jobs into a number of seperate tasks each being handled by an individual worker |
| Horizontal Integration | Firms join at the same stage of production in the same industry |
| Vertical Integration | Where a firm develops market power by integrating with different stages of production in the industry |
Combine with other sets
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