# ECON-22-2-to-22-2C

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Category: Education

## Presentation Description

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## Presentation Transcript

### Production:

Thor Vincent Carandang Production But first, let’s recap about business. Through individuals working toward common goals, profit is made. 1 Working together to satisfy societal needs to profit, is business. 2 Covering: 22-2 22-2A 22-2B 22-2C

### Production:

Okay, look. It takes stuff (resources), to make other stuff ( products). Cause and effect. Let’s start off with resources – or “inputs” . Fixed inputs, and variable inputs. + + + + = Production How do you do it? Yeah, like it’d take some cake mix and an oven to bake a cake. 3 Wait what – why would you use cigarettes as an example?! 4 22-2

### Production:

Okay, look. It takes stuff (resources), to make other stuff (produce). Cause and effect. Let’s start off with resources – or “inputs” . Fixed inputs, and variable inputs. + + + + = Production Input, gets you output. This case may totally have both fixed and variable inputs. Fixed inputs are resources that you’ve invested your money into and can’t have a refund for; these are sunk costs. Example , you rented a facility for a 6-month term. That facility is a fixed input, for six months. 22-2

### Production:

Okay, look. It takes stuff (resources), to make other stuff ( products). Cause and effect. Let’s start off with resources – or “inputs” . Fixed inputs, and variable inputs. + + + + = Production Output, comes from input. This case may totally have both fixed and variable inputs. Variable inputs can be adjusted to the quantity of output desired. Good examples of this is labor and materials – more workers, gets more work done. More materials, more products. 22-2

### Production:

Yeah, so what about timespan? It depends. A short run could last a few years, and a long run could even just last a week. Production Common misconceptions on short and long runs. The short-run , and the long-run. What differs between them? Spelling :D The fact that short-runs have at least one fixed input. 22-2A

### Production:

Suppose that you’ve got two inputs, materials and capital . Now, let’s say that the capital (arable land) is fixed . Since an input is fixed, you’re on a short-run . Output is changed by adjusting the variables (materials/fertilizer). This simple table shows the most productive period, the diminishing returns, and the embarrassing negative returns. Sad. Production In the Short-Run Producing in the short-run as a corn farmer: 22-2B

### Production:

So, whose marginal productivity is it anyway? Woah , you can’t just pin and blame the “-75” onto the sixth pack of fertilizer. It’s not its fault for being the one you last added before you poisoned your poor crops. This is the result of the marginal productivity of all 6 of your fertilizer units combined. That number could be equally attached to the first, third, or any of the previous units too. # FertilizerEquality # CornJustice # Nobody’sMarginalProductivity Production Whose marginal productivity are we talking about? ur not even seen-zoning me, ugh. h appy valentine’s day. 5 this is the worst powerpoint ever tbh , title’s in MS Comic Sans 6 22-2C