Input problems

Definition

Input problems refer to situations where factors such as labor, capital, and technology are limited resources used in production. These problems arise when determining how inputs should be allocated efficiently among different production activities.

Related terms

Production possibilities curve (PPC): A graphical representation that shows all possible combinations of two goods that can be produced given available resources and technology.

Factor market: The market where factors of production such as labor, capital, and land are bought and sold.

Productivity: The measure of output per unit input. It indicates how efficiently inputs are being utilized in the production process.