Business in the Market Economy (HSC SSCE Economics): Flashcards

Output from specific quantity of inputs within a given timeframe

Production = total output; productivity = output per input ratio

Major method for businesses to increase productivity

Workers specialise in particular tasks in production process

Cost-saving advantages from firm expanding scale of operations

Most efficient production level with lowest average costs

Cost disadvantages when firm expands beyond certain point

Firms gain efficiency through practice and repetition over time

Advantages from industry growth, not firm's own operations

Disadvantages from industry growth beyond firm's control