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3 Tutorials that teach Resource Allocation for Firms
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Resource Allocation for Firms

Resource Allocation for Firms

Author: Justin Tapp
Description:

This lesson will explain the economic idea of how resources are allocated for firms.

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Tutorial

Notes on Resource Allocation for Firms

Terms to Know

Land

A factor of production that occurs naturally in the form of real estate or organic assets.
 

Labor

Human service that contributes to the creation or distribution of goods or services.
 

Capital

Material assets in the form of money or machinery used as a factor of production.
 

Factors of production

Resources defined as land, labor, and capital that is necessary to produce output for the sake of profit.
 

Constraints

An element that interrupts production of a firm or consumption by individuals.
 

Cost Minimization

Output strategy that incurs the least amount of cost.
 

Profit Maximization

Procedure of determining quantity and cost that yields the greatest profit.
 

Short-run Constraints

Temporary period of time with least control over constraints when at least one element is fixed.