Production, Specialisation and Exchange

Production is a process, or set of processes, that converts inputs into outputs.
Productivity is measured by output per unit of input.
Labour productivity, or output per worker, id the mosst commonly used measure of productivity.
The division of labour means that different workers do different jobs.
The division of labour and specialisation occur together.
Specialisation and the division of labour require trade and exchange.
Money is the main medium of exchange in modern economies, though barter still sometimes takes place.
Average cost is cost per unit of output.
A firm's average cost curve…

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