| Term | Definition |
|---|
| Producers | those involves in the ouput of gooods and services |
| Production | the output of goods and services. Production involves the resources(inputs) being transformed in some way to produce goods and services(outputs) |
| Productivity | the rate of output or relationship between outputs and inputs. The productivity of any resource can be measured by what it produces(its ouput) in relation to the amount of the resource used(its inputs) over a period of time, e.g. output per worker per day |
| Mechanisation | Producing something with machines that was previously done by hand |
| Specialisation | a worker, a resion or a country concentrates on the producton of one type of output and become skillful in the job |
| Technology | refers to the type of capital goods available to workers and to the processes and methods of production. This can include use of the latest machines or introducing new processes |
| Division of labour | Splitting of a specialist job into a number of seperate tasks each being handled by an individual worker, perhaps on a production line |
| Horizontal integration | firms join at the same stage of production in the same industry. For example two breweries merge, or a leading bank successfully takes over another bank. |
| Vertical integraion | where a firm develops market power by integrating with different stages of production in the industry, e.g. by buying its suppliers or controlling the main retail outlets. |
| Diseconomies of scale | output increases beyond the level that minimises average cost. The per-unit cost of production increases as output increases. It results from management's inability to run the firm efficiently, or congestion and hold-ups ocurring in the productive process |
Combine with other sets
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