Productivity refers to the physical relationship between the quantity produced (output) and the quantity of resources used in the course of production (input). "It is the ratio between the output of goods and services and the input of resources consumed in the process of production." Productivity is the ratio between output of wealth and input of resources used in production [...]
Examples of cost of production: 1. Sunk Cost and Future Cost 2. Actual Cost 3. Opportunity Cost 4. Explicit Cost 5. Implicit Cost 6. Money Cost and Real Cost 7. Private Cost and Social Cost 8. Selling Cost 9. Overhead Cost. Example # 1. Sunk Cost and Future Cost: Expenditure which has been incurred in past and which cannot be [...]
In this article we will discuss about:- 1. Meaning and Definitions of Capital 2. Characteristics of Capital 3. Functions 4. Examples 5. Importance. Meaning and Definitions of Capital: Capital is defined as "All those man-made goods which are used in further production of wealth." Thus, capital is a man-made resource of production. Machinery, tools and equipment of all kinds, buildings, [...]