3 Tutorials that teach Resource Allocation for Firms
Take your pick:
Resource Allocation for Firms

Resource Allocation for Firms

Author: Catherine Barry

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

See More
Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

Begin Free Trial
No credit card required

27 Sophia partners guarantee credit transfer.

245 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 21 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.

Terms to Know
  • Capital

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

  • Constraints

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

  • Cost Minimization

    Output strategy that incurs the least amount of cost.

  • Factors of Production

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

  • Labor

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

  • Land

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

  • 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.