Learn vocabulary, terms, and more with flashcards, games, and other study tools. Your dashboard and recommendations. Start studying Economics: Chapter #4. A firm’s choice of production method and of inputs is likely to depend on the prices of various inputs it might use. The needed inputs may be scarce, and so constitute productive factors, either because they represent something which cannot be produced, like land (in the strictly economic sense), or because although their supply could be enlarged, like factories, to do so would be costly in terms of resources. Booster Classes. Offline Version: PDF. In economics, input refers to the factors that contribute to the production of a good or service (raw materials, employees, information, money, etc. 3.7 million tough questions answered. Input cost is the set of costs incurred to create a product or service. In economics, a production function relates physical output of a production process to physical inputs or factors of production. Moreover, this category of inputs can exist in either the short run or the long run Similarly, for producing a particular quantity of output, if the firm is to remain on IQ 2, then the least cost combination of inputs would be given by the point T 2, because this point is the point of tangency between IQ 2 and an ICL (i.e., L 2 M 2).. Examples of these costs are direct materials , direct labor , and factory overhead . Personalized courses, with or without credits. Economic Definition of production inputs. Definition. Homework Help. Defined. Get the detailed answer: Define inputs in economics. Class Notes. Switch to. Study Guides. input: the information or material that enters or is manually entered, e.g., with a keyboard. Output is the result of an economic process that has used inputs to produce a product or service that is available for sale or use somewhere else.. Net output, sometimes called netput is a quantity, in the context of production, that is positive if the quantity is output by the production process and negative if it is an input to the production process. All other costs incurred by a business are related to general and administrative activities. Input Substitution in Production A key idea in economics is that business firms typically can produce their products/svcs. using a variety of different methods and/or a variety of different combinations of inputs. Term production inputs Definition: The resources, or factors of production, used in the production of output by a firm. Micro Economics: what is the definition of a lumpy input? Ace your next exam with ease. Home. 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