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BUSINESS ACTIVITY - Coggle Diagram
BUSINESS ACTIVITY
ADDED VALUE =
SELLING PRICE-
COST OF BOUGHT MATERIALS
SPECIALISATION
WHEN PEOPLE CONCENTRATE ON WHAT THEY ARE BEST AT
UNLIMITED WANTS+
LIMITED RESOURCES
SCARCITY
CHOICE
OPPORTUNITY COST
LABOUR
WAGES
CAPITAL
INTEREST
RENT
LAND
FACTORS OF PRODUCTION
ENTERPRISE
PROFIT
DIVISION OF LABOUR
PRODUCTION PROCESS IS SPLIT UP INTO DIFFERENT TASKS AND EACH PERFORMS ONE OF THESE TASKS IT IS A FORM OF SPECIALISATION
INCREASE PRICE
REDUCE MATERIAL COST