explain importance of production across different countries of a product
Answers
The St. Louis Fed defined the factors of production as "what people use to produce goods and services." Improvement along these factors enables producers to create more and cheaper economic goods. This, in turn, allows consumers to earn more for their labor services and to pay less for existing goods.
One very simple example of a production function might be Q=K+L, where Q is the quantity of output, K is the amount of capital, and L is the amount of labor used in production. For example, a firm with five employees will produce five units of output as long as it has at least five units of capital.
Answer:
The St. Louis Fed defined the factors of production as "what people use to produce goods and services." Improvement along these factors enables producers to create more and cheaper economic goods. This, in turn, allows consumers to earn more for their labor services and to pay less for existing goods.
One very simple example of a production function might be Q=K+L, where Q is the quantity and L is the amount of labor used in production. For example, a firm with five employees will produce five units of output as long as it has at least five units of capital.