Inputs And Outputs

Inputs: These are the resources or materials a producer needs to create a product or provide a service. Common inputs include labour (the work done by people), machines, land, and raw materials.

Outputs: This is the final product or service that comes from combining and utilising the inputs.

Example

A farmer using land, seeds, water, fertiliser, and his own work to grow and harvest wheat.

The wheat is the output, and all the things the farmer used and did are the inputs.

Cost Of Production

To get the inputs, a producer needs to pay money. For instance, they might need to buy raw materials, pay workers, or rent land and equipment. This total expense is called the cost of production.