1. Production and Productivity

2. Production Production is the process of transforming inputs into goods and services. We measure production as the total amount of output produced. E.g. In one month John’s Lettuce company produces 16000 lettuces, therefore total production is 16000 lettuces

3. Productivity Productivity = Output per unit of input OR = Rate of output We can measure productivity in relation to labour (Output per worker ) Capital ( Output per machine) Land ( Output per hectare) Productivity has increased if There is more output using the same input There are fewer inputs required to produce the same output

4. Labour Intensive and Capital Intensive Production The way that a firm calculates productivity may depend on the methods of production they use.

5. Labour Intensive Production

6. Capital Intensive Production