Wednesday, 4 March 2015

Chapter 3, Production (Week Seven)


Short - run and Long- run Production


Short - run period   
- is the time frame in which at least one of the input is fixed but the other input are varied

Long - run period
- is the time frame in which all inputs are variables

Fixed input
-quantity does not change according to output

Variable input
- quantity changes according to output


                                                               Type of Production


a) Primary Production
-Involved in the first stage on the production process
-Primary stage of production
-included the extractive industries
 Example: coal mining, iron , agricultural, fishing

b) Secondary Production
-Invoved  in manufacturing the finished good
-Included textile manufactures, motorcar, steel industries, consumer goods
and industriesin general

c) Tertiary Production
-Do not produce goods but provides services
- consists of two parts
1. commercial services
2. direct services


Commercial services
-include the all those industries engaged in the movement in commodities.
-examples: Maybank, Prudential Insurance, tesco, Mas Cargo


Direct services
-not rendered to material goods, as in commerce
-example: Doctors and teachers




For futher informations regarding to this topic, refer to this link