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Marginal Productivity
Marginal productivity refers to the additional output produced as a result of adding one more unit of a specific input, keeping all other inputs constant.
Fixed-Proportion
A production scenario where the input proportions cannot be changed; each unit of output requires the same ratio of inputs.
Production System
The combination of inputs, processes, and outputs that creates goods or services in an organized manner.
Labor Inputs
The quantity of labor used in the production process, often measured in hours worked or number of employees.
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