Market failures Factors of Production: Definitions, Examples and Importance The resources or inputs needed by firms to produce goods and services are called the factors of production.
Definitions Subsidy The payment made by governments to the producers of goods and services is called a subsidy.
Definitions Long Run Aggregate Supply The long-run aggregate supply curve depicts the relationship between the price level and the real GDP in the long run.
Definitions Division of Labour The division of labour is the process of splitting a job into smaller tasks and assigning each task to an individual worker.
Business economics Diseconomies of Scale An increase in the long run average cost (LRAC) because of an increase in the scale of operations of a firm is called diseconomies of scale.
