PRODUCTI

ON
THEORY,
DEMAND
AND
SUPPLY
 What is
PRODUCTION?
 What is Production?
Production refers to the use of economic
resources to create goods and services that
will be used to satisfy human wants.
 What is Production?
Production refers to the use of economic
resources to create goods and services that
will be used to satisfy human wants.
 What is Production?
It is the process of changing the form of a
product by combining factors to produce an
output.
What is OUTPUT?
-refers to the product created result of the combination
of inputs in the production process.
-Final Product/Finish Product
-Combination of raw materials/input
What is INPUT?
- refers to the resources used to produce goods
and services.
-Raw Materials
 Factors of
PRODUCTION
Factors of Production?
 Factors of Production?
1. LAND
in the strict sense of the word
refers to soil, however, it also
includes all natural resources such
as water and mineral resources. Land is subject to
depletion. Because it is an economic resource, it is not
available in unlimited amounts. Thus, the use of land
entails a cost to the user. The payment for the use of land
is called rent.
 Factors of Production?
2. LABOUR
refers to the human effort expended
in production. It may come in the
form of skilled workers, managerial
employees, professional workers such as doctors and
lawyers, manual workers such as bus drivers. All human
resources have to be compensated in the form of a wage.
 Factors of Production?
3.CAPITAL
is the factor of production
in charge of combining all other
economic resources for use in production.
The entrepreneur is responsible for the success of a
productive venture. He or she must be creative, must be
willing to take risks, and must be a good decision-maker.
For this efforts, the entrepreneur’s reward is the profit he
earns.
 Factors of Production?
4.ENTREPRENEU
refers to the man-made factors
Rused in production. The most
common form of capital is financial.
This is the money used for the purpose of investment.
Physical capital refers to tools, machinery, and
equipment used to produce goods and services. The
owner of capital receives payment in the form of interest.
Activity (Presentation)

With your groupmates, think of a business/output

you want to produce. Name and design your business
or products, then present it to the class.
Note: Identify the input and the factors of production.
 GROUPINGS
ABAPO VINCE JUSTINE
DECENA FERD
MELIZA MHEG
BEA
KHIN JEROMEL JOHN
RISSA VINCENT
LAURENCE JAMES RHAINE
NADINE

LOVELY LUISA ISABELLA RAIZEL JAMER

JOEVITO CLARK MARK SHANE
DARREL FREDERICK
RYLE
AUBREY ESTELLA SAMANTHA AZLENE
DUSTIN

RONSELLE KURT FRANZ LENDRIC KADE BENJAMIN

DANNAH KIMBERLY RAMOS GIANNE
RAMOS MAURICIO REBOREDO ROXAS