- 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…