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
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