Gao yushan

Production of inputs
● Inputs are any resources used to create goods and services
● 2 type of input - variable input & fixed input.
● variable input is a resource or factor of production which can be changed in the
short run by a firm and will directly effect output produced.
● Examples of variables input : raw material , labors
● fixed input is a resource or factor of production which cannot be changed in the
short run by a firm.
● Fixed input : capitals
● Papparich, chicken rice shop, secret recipe can be catogorized under food and
beverages business with franchise
● Their input are basically the same : raw material, labor, capitals and entrepreneurs
● Raw materials are the input goods or inventory that a company needs to
manufacture its products
● Raw material the same - end products - serve food on the menu
Raw Ingredients to make Ingredients to Ingredients to make
material food and drinks (rice, make food and cake, food, and drinks
coconut milk, sugar, drinks (rice, (flour,chocolate,butter,
etc) chicken, eggs, etc)
vegetables, etc)

● Labor is the amount workers perform that contributes to the production process.
● 3 firm have labors as their inputs
Labors Restaurant crew Restaurant crew Restaurant crew
(manager, chef, waiter, (manager, chef, (manager, bakers,
etc) cashier, etc) chef, etc)

● Capital is any tool, building or machine used to produce goods or services

Capitals Restaurant premise, Restaurant premise, Restaurant premise,
furniture, machinery, furniture, furniture,
cooking utensils, fittings machinery, cooking machinery, cooking
utensils, fittings utensils, fittings
● Entrepreneurs combines these factors of production to earn a profit : combine all
factor of production to produce products
Entrepreneurs Innovation, investment, Innovation, Innovation,
utilization of investment, investment,
production factors utilization of utilization of
production factors production factors

● Variables input : raw material and labor

● These input will be directly affect the production
● Fixed input : capitals , entrepreneur
● Manager to strategize their resources to control their productions in a long run.