3.6 - firms and production Flashcards
1
Q
short run production
A
the production process (period of time) in which there is at least one fixed factor, typically the producing time
2
Q
long run production
A
the production process in which there are no fixed factors
- all factors are variable
3
Q
production vs productivity
A
production: total output in a period of time
productivity: output produced per FOP or per input
4
Q
capital intensive –> labour intensive
A
- labour becomes less expensive
- mass production –> specialised production
- capital equipment becomes less reliable/more expensive
- TU becomes less influential
5
Q
demand determinants for land
A
- productivity
- location
- degree of necessity
6
Q
demand determinants for labour
A
- wage rate
- demographic changes
- immigration policies
- labour mobility
- quality of labour
7
Q
demand determinants for capital
A
- level of investment
- price of capital goods
- price of other FOPs
- profit level
- gov taxes
- interest rate
- business confidence
- technological advances
8
Q
demand determinants for enterprise
A
- gov policies to help startups
- edu + training
- opportunities for young people to innovate
- employment opportunities
