stages of production

-Production within an economy can be divided into three main stages: primary, secondary and tertiary.

deal with the relationship between the factors of production and the output of goods and services

function provides an abstract mathematical representation of the relation between the production of a good and the inputs used. A production function is usually expressed in this general form: Q = f(L, K)

to scale results if long run production changes are greater than the proportional changes in all inputs used by a firm

- A yield rate that after a certain point fails to increase proportionately to additional outlays of capital or investments of time and labor

When increasing amounts of one factor of production are employed in production along with a fixed amount of some other production factor, after some point, the resulting increases in output of product become smaller and smaller.

The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline.

The change in the quantity of total product resulting from a unit change in a variable input, keeping all other inputs unchanged. Example: marginal product = change in total product/ change in variable input

This occurs when a company or business has a financial loss or lackluster returns on an investment during a specific period of time

is the change in total cost that arises when the quantity produced changes by one unit. That is, it is the cost of producing one more unit of a good.

the total receipts of a firm from the sale of any given quantity of output

is the extra revenue that an additional unit of product will bring. It is the additional income from selling one more unit of a good; sometimes equal to price.