Question

Match each terms listed in the dropdown to its descriptions. Terms Descriptions Production activities for a custom product. Production activities for a special order. A system that records manufacturing costs. Mass production in a continuous flow of steps. The expected selling price of a job minus its desired profit.

Answer 1

The production process for making a pizza includes inputs like raw materials (flour, water, yeast, tomatoes, spices, cheese), labor (pizzaiolo's skills), and physical capital (oven and kitchen tools). These are transformed into the final product, a pizza. Economists categorize these inputs into essential factors of production utilized in different production technologies.

Step-by-step explanation:

The inputs (or factors of production) in the production process for pizza include materials such as flour, water, yeast, tomatoes, spices, and cheese. These constitute the raw materials in the production process. Additionally, the labor provided by the pizzaiolo is essential, which involves skills in dough making, sauce preparation, and baking. Physical capital, which could include the oven, peel, and other kitchen tools, is also an input. The process described illustrates the transformation of these inputs into the final product, which is the pizza that gets sold to the customer.

Economists categorize these inputs into labor, capital, and raw materials, which are essential in any production technologies. These technologies refer to various methods of combining inputs, such as labor and machinery, to produce output. In the context of revenue, the selling price of the pizza would be considered the income the firm gains after the product is sold.