The final product refers to the end result of combining factors of production (such as labor and capital) together to create goods and services that are ready for consumption by households.
Related terms
Production function: This term refers to the relationship between inputs (factors of production) and outputs (final products). It shows how much output can be produced from given quantities of inputs.
Total revenue: Total revenue represents the total amount of money received by a firm from selling its final products. It is calculated by multiplying the price per unit by the quantity sold.
Profit maximization: Profit maximization is when a firm aims to produce at a level where its total revenue exceeds its total costs. By finding this optimum point, businesses can maximize their profits.