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Managerial Economics and Strategy, 2/e
book

Managerial Economics and Strategy, 2/e

by Jeffrey M. Perloff, James A. Brander
February 2016
Beginner to intermediate content levelBeginner to intermediate
500 pages
33h 40m
English
Pearson
Content preview from Managerial Economics and Strategy, 2/e

5.1 Production Functions

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 ...

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Publisher Resources

ISBN: 9780134472553