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Resources/Inputs = The elements that go into producing the good/service

Factors of Production = Turning inputs into outputs

Production = Where factors of production are turned into a form which satisfies customers

There are 4 factors of production:
Capital
Enterprise
Land
Labour

Output is known as production

It is important…

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Adding value

Value added = Sales revenue ­ Cost of materials

Adding value = The process of increasing the worth of resources by modifying them

Added value is the value of the process of the transformation of inputs into outputs. It is
measured by the difference in value between the…

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