Production Process Input

A Production Process Input is a process input that a production process.

• AKA: Factor of Production.
• Context:
  • It can (typically) be an Economic Resource.
  • It can (typically) have a Unit Price (a factor of production price).
  • It can be related to a Factor Demand by a Factor Demand Function.
  • It can include Private Land, Entrepreneurship, Labor, and Economic Capital.
• Example(s):
  • a Production Labor, demanding wage rates.
  • a Production Capital, demanding return on capital.
  • …
• Counter-Example(s):
  • a Production Process Output.
  • a Factor Demand.
• See: Production Function, Economic Goods, Stocks And Flows, Labor (Economics), Raw Materials, Natural Resource, Human Capital, Factor-Price Equalization Theory, Total-Factor Productivity.

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References

2014

• (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Factors_of_production Retrieved:2014-4-19.
  • In economics, factors of production are the inputs to the production process. Finished goods are the output.

    Input determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a production function. There are three basic factors of production: land, labour, capital. Some modern economists also include entrepreneurship as a factor of production. These factors are also frequently labeled "producer goods" so as to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods." All three of these are required in combination at a time to produce a commodity. In economics, production means creation or an addition of utility. Factors of production (or productive 'inputs' or 'resources') are any commodities or services used to produce goods or services.

    Factors of production may also refer specifically to the primary factors, which are stocks including land, labor (the ability to work), and capital goods applied to production. Materials and energy are considered as secondary factors in classical economics because they are obtained from land, labour and capital. The primary factors facilitate production but neither become part of the product (as with raw materials) nor become significantly transformed by the production process (as with fuel used to power machinery). Land includes not only the site of production but natural resources above or below the soil. The factor land may, however, for simplification purposes be merged with capital in some cases (due to land being of little importance in the service sector and manufacturing). Recent usage has distinguished human capital (the stock of knowledge in the labor force) from labor. Entrepreneurship is also sometimes considered a factor of production. Sometimes the overall state of technology is described as a factor of production. The number and definition of factors varies, depending on theoretical purpose, empirical emphasis, or school of economics.

• http://www.investopedia.com/terms/f/factors-production.asp
  • QUOTE: An economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit. The factors of production include land, labor, capital and entrepreneurship.

    In essence, land, labor, capital and entrepreneurship encompass all of the inputs needed to produce a good or service. Land represents all natural resources, such as timber and gold, used in the production of a good. Labor is all of the work that laborers and workers perform at all levels of an organization, except for the entrepreneur. The entrepreneur is the individual who takes an idea and attempts to make an economic profit from it by combining all other factors of production. The entrepreneur also takes on all of the risks and rewards of the business. The capital is all of the tools and machinery used to produce a good or service.

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