Respuesta :
Goods and services are manufactured to satisfy the needs of potential consumers (the demand-side of the market). The different decisions made by the producers (the supply-side of the market), to define how to undertake the manufacturing process, are the following:
- To produce items at a lower cost or higher quality ways to make the biggest profit. There are two ways of becoming the most attractive supplier to consumers in a market: either offering goods at the lowest cost or, even tough the goods are a bit expensive, making consumers appreciate them because of their outstanding quality.
- Methods traditionally used to make a good. Of course the producer needs to consider the production methods available, traditional ones, and also innovative, as this latter ones will allow him to differentiate his output from the one of his competitors (by obtaining products with either best prices or best quality).
Factors that are considered when deciding how to make goods and services are Finances of prospective buyers, Ways to produce items at a lower cost or Higher Quality and Ways to make the biggest profit.
Further Explanation:-
Factors which are looked upon in order to decide that how to make goods and services are Finances of prospective buyers, as well as the ways through which the products can be produced in higher ratios but at lower cost as well as ways to make profits from it with respect to the field of economics these factors of production are the part of Production process in order to produce output which is services as well as finished goods.
The quantity of the output is determined from the utilized amount from the output in accordance to the relationship and this is called the production function. Three basic factors are there of the production and these factors are land, labor and Capital. The factors under this are also often labeled as Producer services and goods in order to bring difference in services along with the goods that are purchased by the customers and these products are often labeled as 'Customer Goods'.
The term Absolute Advantage also can be referred as the ability to a Firm or an Industry to produce or Manufacture greater quantity of goods as compared to their rivals or competitors with the usage of same amount of resources. Factors that are taken care of in deciding how to make goods and services are Finances of prospective buyers, Ways to produce items at a lower cost or Higher Quality and Ways to make the biggest profit.
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Answer Details:
Grade – High School
Subject – Economics
Chapter – Factors of Production
Keywords–Factors of Production, Economics, Absolute Advantage, Resources, Finances, Buyers, Produce, Quantity, Profit, Relationship and Factors.
