Basic Emotions and Food Items

Basic Emotions

• Excited: depicts a happy, joyful emotion
• Silly: portrays a playful, lighthearted emotion
• Cool: a calm, composed, and collected emotion
• Annoyed: a mildly irritated emotion
• Worried: depicts a concerned, anxious emotion
• Angry: shows a frustrated, upset emotion

Food Item

• A hamburger with fries.
• Shows a cheese burger on a plate with french fries on the side.
• A visual representation of a fast food meal.

Ingredients for a Dish

• Ground beef, chopped onions, egg, paprika, pepper, and salt.
• A list of ingredients for a dish, likely a meatball dish.
• This is a visual representation of the ingredients needed for a dish.

Meat Grinder Machine

• A large metal machine used to grind meat.
• This machine is used in food processing, and it takes a bulky piece of meat and transforms it into smaller pieces of ground meat.
• A picture of the machine.

Essence of Production

• Production is the use of resources, such as land, labor, and capital, to make goods and services to satisfy needs and wants.
• Production is considered an economical process.
• It involves using resources to make products.

Types of Goods

• Consumer goods are sold directly to consumers.
• Producer goods are used to make other goods.
• There are two distinguishing types of goods based on their immediate usage or consumption.

Factors of Production

• Land: Includes all natural resources like forests, minerals, energy, water, and fertile fields.
• Capital: Refers to tools and machinery used in production. Financial capital is the money used to buy machinery and other equipment.
• Labor: Includes the work laborers and workers perform, such as physical and mental talents, abilities, and strengths.
• Entrepreneur: The captain of the industry who manages and controls the factors of production efficiently.
• The process involves the participation of four fundamental components, these are: land, labor, capital and entrepreneur.

Flow of Payments to Factors of Production

• Land receives rent.
• Labor gets wages.
• Capital earns interest.
• Entrepreneurs get profit.
• This is a summary of the flow of payments made to the various factors of production.

Role of Factors of Production

• Factors of production (land, labor, capital, and entrepreneur) work together to produce goods and services.
• The factors of production work together toward production of useful products.
• Resources are used to make products that people need for daily activities.

Production Function

• Describes the relationship between physical inputs and physical outputs in production or businesses.
• It describes the process of production of goods, services and other products produced.
• Relationships of output in relation to different types of input.

Inputs

• Include land, labor, capital, and the entrepreneur.
• These are used to make products.
• These components are required in order to create products.

Types of Inputs

• Fixed input: Cannot be changed immediately in the short run, examples include land, buildings, and factories.
• Variable input: Can be changed easily according to the desired volume of production, examples include the number of workers, machines, and raw materials.

Outputs

• The final product created after input.
• The product made after using the inputs.

Law of Variable Proportions

• The final output is affected only if one input is varied while others are held constant.
• This principle is valid only during a short period of time.
• One input can only affect the final output during a short period.

Stages of Production

• Stage 1: Increasing returns, the marginal product of the variable input is increasing.
• Stage 2: Decreasing returns, the marginal product of the variable input is decreasing but still positive.
• Stage 3: Negative returns, the marginal product of the variable input is negative.

Methods of Production

• Mechanization: Work is done mainly by machines.
• Production lines: Use of conveyor belts for smooth, sequential work.
• Division of labor: Workers specialize in particular tasks.
• Automation: Work previously done by people is now done by machines.
• Computerized machines: Sophisticated machines controlled by computers.

Production Costs

• Sum of all payments to the factors of production, including rent, wages, interest, and profit.
• These are expenses undertaken in the process of production in order for any business to succeed.
• This is calculated in order for a company to decide on the selling price of products.

Fixed Cost

• Expenses for fixed inputs, like rent, which remain consistent regardless of production level.
• Expenses that are fixed for the company.

Variable Cost

• Costs dependent on the production level, such as wages for workers, electricity.
• Expenses that depend on the scale of production.

Total Cost

• Sum of fixed and variable costs.
• Expenses regarding production for a company.

Cost for Every Product

• Cost to produce a product.
• This is used to set the selling price for the product.

Average Fixed Cost (AFC)

• Total fixed cost divided by total product.
• Average cost of fixed investment.

Average Variable Cost (AVC)

• Total variable cost divided by total product.
• Average price of variable input.

Average Total Cost (ATC)

• Total cost divided by total product.
• The average cost to produce a product.

Marginal Cost

• Change in total cost divided by a change in the quantity of the product.
• Additional cost per additional unit of an input.

Miscellaneous Costs

• Explicit cost: Payments to others for things like labor, rent.
• Implicit cost: Payments the business owner could have received.
• Opportunity cost: The value of the next best alternative.

Production Process

• The creation of goods and services to satisfy needs and wants.
• The whole process of creating goods or products that customers want and need.

Land

• Factor of production encompassing all natural resources used.
• This includes the raw materials or natural resources used in the process of production.

Entrepreneur

• The captain of the industry, efficiently managing production factors.
• A key manager in a business.

Labor

• Factor of production representing human abilities and skills.
• Human effort or skills applied toward production.

Discussion Questions

• Consider other situations where the law of variable proportion might apply.
• Establish a method for managing production inputs to achieve maximum efficiency.
• Explain why recognizing and understanding the law of variable proportion is crucial for business.

Types of Industries

• Small-scale Industries: Typically home-based, producing handmade items using simple equipment.
• Medium-scale Industries: Produce items like furniture, clothing, or jewelry. Operate with a sizable workforce.
• Large-scale Industries: Employ heavy machinery, many workers, and substantial capital. Produce electronic goods, cement, and medicines.

Business Organizations

• Sole Proprietorship: Single owner, limited production and resources.
• Partnership: Two or more owners sharing resources/capital.
• Corporation: Stockholders/shareholders own the company, with a board of directors managing.
• Cooperative: Members own the company and aim to serve members rather than profit.