Types of Production
Factors of Production
Characteristics of Land
Characteristics of Labour
Characteristics of Capital
Entrepreneurship: An entrepreneur is a person who organises, controls and coordinates other factors (land and capital) to obtain maximum production at minimum costs, with a view to making profit.
Functions of the Entrepreneur
Reward for Factors of Production
Specialisation & Division of Labour
Advantages of Division Labour
Disadvantages of Division of Labour
Limitations to Division of Labour
Scale Of Production
Production can be either on a small scale or on a large scale. The following factors determine the scale of production:
Economies of Scale: These are the advantages which a firm/industry realise from production expansion. Advantages of Large Scale Production. These include:
Diseconomies of scale (Disadvantages of Large scale production)
Why Small Firms Survive in West Africa
Production Possibility Curve/Frontier/Boundary (PPC) or (PPF) or (PPB)
PPC is a curve or graph showing the combination of two commodities that can be produced, given the available resources and state of technology
Basic Assumptions of PPC
Relationship between Production Possibility Curve and The Concept of Opportunity Cost:
Opportunity cost is the best alternative forgone. It is closely related to the concept of production possibility curve in that each combination involves the use of resources and any shift from one combination to the other involves a shift in resources. In addition, the PPC slopes downwards from left to right, reflecting that opportunity cost is involved in any combination.
Importance or Uses of PPC
Note: The slope of the PPC is sometimes called Marginal Rate of Transformation
Economic rent is any payment in excess of what is sufficient to induce a factor of production e.g if a worker is paid over the average wage rate.
Note: When law of diminishing returns is expressed with reference to the eventual fall of the marginal products only, it is considered as Law of Diminishing Marginal Productivity.
Business Organisations / Enterprises
Business organisations are enterprises established by individuals, group of individuals or a government for the purpose of providing goods and services to satisfy human wants.
Types of Business Enterprises I