Chapter 1Cost and Use of Resources
1.1 Chapter Summary
Chapter 1 introduces the economics of production, emphasizing on the analysis of all available resources that will go into producing a good or service. I review the Cobb–Douglas production function and how it has been improved over the years. A new and straightforward equation is proposed to analyze production in any business. This new production equation is explained with a few operating scenarios to serve as examples. The chapter concludes with three theoretical scenarios that serve as reference points for organizations to use as they find the right mix of hiring human workers and implementing machines.
1.2 Operations and Resources
How an organization ...
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