Question

Organizations interact with their environment to transform resources into product outputs.

Answer 1

Production is the process a firm uses to transform inputs into outputs. In the case of pizza making, the inputs include labor, capital, and raw materials. These inputs are used to create the pizza that the customer pays for.

Step-by-step explanation:

Production is the process a firm uses to transform inputs into outputs. In the case of pizza making, the inputs include labor (pizzaiolo, cook), capital (oven, pizza peel), and raw materials (flour, water, yeast, tomatoes, spices, cheese, toppings). These inputs are used to create the output, which is the pizza that the customer pays for.