BIOL 1209 Chapter : 20140408 155748
Document Summary
The role of the firm: a firm is an economic institution that transforms factors or production into goods and services. Firms are formed when benefits can be obtained from individual working as a team. Technology: the processes a firm uses to turn inputs into outputs of goods and services. Technological change: a change in the ability of a firm to produce a give level of output with a given quantity of inputs. In the supply process, people offer their factors of production, such as land, labor, and capital, to the market: firms transform the factors into goods for consumers, production is the transformation of factors into goods. Explicit cost: a cost incurred when an actual (monetary) payment is made. Implicit cost: a cost that represents the value of resources used in production for which no actual (monetary) payment is made.
