Factors of production - Economics Online

Economics Online

Factors of production

A collection of 30 posts

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Business economics

Adaptive Learning as Bayesian Updating: Decision Theory in Modern Test Prep

Adaptive test prep uses Bayesian updating and IRT to target weaknesses, balancing exploration and efficiency for faster mastery.

Factors of production

Economies of scope: why personalised hoodies no longer cost a premium to make

Economies of scope are dragging the price of custom hoodies down, and the reason is simple; they're printed on demand rather than made in advance. The global custom t-shirt printing market was worth USD5.16 billion in 2024, and the hoodie is being carried along by the same

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Factors of production

Comparative Advantage in the Age of Automation: The Impact of AI on Global Trade Dynamics

AI is poised to create major changes in labor markets around the world by altering opportunity costs and nations' comparative advantages in manufacturing versus white collar tasks.

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Competitive markets

The Resource Curse and Institutional Failure: Economic Rent-Seeking and Development Challenges in Africa

Africa's resource wealth is hindered by rent-seeking, weak institutions, and Dutch disease, limiting economic growth and preventing effective use of natural resources.

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Theory of Absolute Advantage

A country has an absolute advantage in the production of that good, which it can produce in greater quantity than another country.

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Factors of production

Economics as a Pillar of Public Health: Addressing R&D Imbalances Through Public-Private Partnerships

Public-private partnerships drive R&D for underfunded health areas like maternal, neonatal, and neglected tropical diseases, reducing disparities.

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Non-Renewable Resources

Non-renewable resources refer to natural resources that cannot be regenerated once depleted.

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Economic Efficiency

Economic efficiency refers to a situation where scarce resources are used in the best possible way.

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Behavioural economics

Frictional Unemployment

Frictional unemployment refers to the unemployment that occurs as a result of the normal functioning of the labour market.

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Factors of production

MITI and the Economic Development Miracle of Japan

MITI is the chief cause of the economic miracle of Japan post WW2.

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Economic Rent Definition

The payment made to a factor of production over and above its transfer earnings is called its economic rent.

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Factors of production

Labor Market Polarization and the Rise of the Virtual AI Agent for Sales Calls: An Application of Routine-Biased Technological Change

AI sales agents are accelerating labor market polarization by automating routine, middle-skill call center jobs.

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Behavioural economics

Platform Economics and Modularity: How Composable Tools Are Reshaping Enterprise Software

Composable tools like private credit software are reshaping enterprise tech by lowering costs and flattening moats.

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Behavioural economics

Labor Market Polarization: AI and the Reshaping of the Video Editing Industry

AI video tools are polarizing the labor market—empowering creators while eroding demand for mid-skill editors.

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Behavioural economics

Navigating the Learning Curve: Why AI Helper Firms Thrive in Early-Stage Markets

AI helper firms like cabina.ai thrive by guiding users through early-stage tech adoption and steep learning curves.

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Business economics

Comparative Advantage and the Rise of B2B AI & ML Development Services

B2B AI & ML development services leverage comparative advantage to help firms unlock value without becoming tech companies.

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Behavioural economics

How Comparative Advantage Is Driving the Outsourcing of Fintech Development

Fintech firms are outsourcing development to specialized partners, leveraging comparative advantage for speed and scale.

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Business economics

Transaction Cost Economics and the Evolution of ERP Software Development

Transaction Cost Economics explains why firms outsource or build ERP systems, balancing cost efficiency and control. Tesla vs. SMEs.

Scarcity in Economics

Scarcity in Economics

The limited availability of resources in contrast to unlimited wants is known as scarcity in economics.

Isoquant Curves Simplified

Isoquant Curves Simplified

An isoquant curve shows various combinations of two factors of production that a firm can use in order to get the same total output.

Law of Diminishing Returns

Law of Diminishing Returns

This law states that when a variable factor of production is added to some fixed inputs, the marginal product eventually diminishes.

Understanding the Supply Shifters

Understanding the Supply Shifters

The supply shifters are the non-price factors that affect the quantity of a good that suppliers are willing and able to sell at a given price.

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Competitive markets

Allocative Efficiency

Allocative efficiency means producing the output level as desired by the people of the country.

Behavioural economics

Joint Supply

Joint supply refers to a situation in which two or more products are produced together from a common resource or input.

Constant Returns to Scale

Constant Returns to Scale

Constant returns to scale refer to the phenomenon when the output of a production process increases in proportion to the inputs.