| Term | Definition |
|---|
| Producers | Those involved in the output of goods and services. |
| Product differention | The product is given different features through advertising, branding and packaging etc. and is used as part of a non-price competition between firms seeking to raise their market share against rival businesses |
| 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 can be measured by what it produces (its output) in relation to the amount of the resource used (its inputs) over a period of time, e.g output per worker per day. |
| Producer Co-operatives | Businesses owned by the suppliers of the business. NZ examples include many of the dairy factories and freezing works such as Fonterra. |
| Diversification | Increasing the range or variety, such as when firms take over another firm in an unrelated industry and develop into an industrial combine or conglomerate. |
| Horizontal Intergration | 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 Intergration | When a firm develops market power by intergrating with different stages of production in the industry. e.g By buying its suppliers or controlling the main retail outlets. |
| 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. |
| Renewable resources | Resources that can naturally regenerate (grow again) e.g forests |
| Capital Resources | Human made resources that help produce other goods and services such as machines, tools and equipment, roads and buildings. We also count semi-finished goods that go towards making a finished good as capital goods |
| Human Resources | Workers used in the production process. The labour force includes those eligible to work (generally those between the school-leaving age, and retirement age, who are actually participating in the work force and offering themselves for emplyment). |
| Specialisation | A worker, a region or county that concentrates on the production of one type of output and become skillful in the job. |
| Substitute Goods | Substitute goods are in competitive demand, they can ve used in place of one another, for example different brands of coffee or soft drinks. |
| Complementary Goods | Goods that are used in conjunction with one another, e.g bread and butter. |
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