February 2016
Beginner to intermediate
500 pages
33h 40m
English
A firm uses a production process to transform inputs or factors of production into outputs. Firms use many types of inputs. Most of these inputs can be grouped into three broad categories:
Capital (K). Services provided by long-lived inputs such as land, buildings (such as factories and stores), and equipment (such as machines and trucks)
Labor (L). Human services such as those provided by managers, skilled workers (such as architects, economists, engineers, and plumbers), and less-skilled workers (such as custodians, construction laborers, and assembly-line workers)
Materials (M). Natural resources and raw goods (e.g., oil, water, and wheat) and processed products (e.g., aluminum, plastic, paper, and steel)
The output ...