Input
Resource/material entering production process.
Formula
Total Input Cost = Σ (Quantity of Each Input × Input Price)
Real World
Nike sources cotton from the US, rubber from Thailand, and synthetic fabrics from China — managing these global inputs across its supply chain directly affects its production costs and profit margins.
Exam Focus
Classify inputs as land, labour, capital, or enterprise when analysing production costs; vague references to 'resources' will not score application marks.
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