Production Theory Archives - Page 2 of 2

Production Theory

fixed cost and variable cost graph

Marginal Cost Definition

Marginal cost comes from the cost of production. This includes both fixed and variable costs. In the case of fixed costs, these are only calculated in the marginal cost if these are required to expand production further.

Factors of Production Definition

Factors of Production Definition

In economics, the factors of production are the separate elements that work together to create a good or service. These include labour, land, and capital. All three are necessary in order to create the final good or service we consume.