ASSIGNMENT HELP | Describe three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service.

Production and Costs – Apple- iPhone/Smartphones

Apple is a part of the Technology industry, and the iPhone is part of the Smartphone industry.

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a) Describe three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service.
One example of an input is machines, which are fixed costs. Keep in mind that all inputs will either fall under fixed or variable cost.
b) Analyze the factors that impact your choice of inputs to produce the chosen product or service. For example, how would a change in the price of raw materials impact the combination of inputs?
c) Based on this analysis, what production decisions would you make? Be sure to support your decisions with examples or data.

MODEL ANSWER

Apple Inc. is one of the giant technology corporations, and it is known for a wide array of commodities, including iPhone, iPad, and computers. The corporation has applied the differentiated business approach, which has helped the business penetrate and dominate any market it ventures. Factors of production include inputs used in the manufacturing of commodities for economic return. In this case, in the iPhone’s production, the primary inputs are labor, capital, and land. Land and natural resources are factors of production used in making iPhones by Apple, which includes any aspects that impact natural resources at the corporation’s suppliers’ disposal in different areas (Gaille, 2018). It also includes the expense and raw materials available such as glass screens, plastic for the extremal casing, and land for building storage properties, repair shops, and showrooms.

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Capital is another essential input used in the production of the iPhone by Apple. Capital can be explained as the human-made equipment needed in the production of commodities | PLACE YOUR ORDER NOW AT writtask.com | factories, machines, retail stores, innovation, and material components are some of the capital | PLACE YOUR ORDER NOW AT writtask.com | to other technology-based organizations in developed countries, Apple eschews complete vertical integration for the benefit of outsourcing concrete production to | PLACE YOUR ORDER NOW AT writtask.com | in the production of the iPhone is labor. Apple’s production and outsourcing of materials are diverse and spread across various nations worldwide, but formation, development, advertising work, and software creation are entirely conducted | PLACE YOUR ORDER NOW AT writtask.com | resources that contribute to Apple’s production include workers working on the designs, prototyping and those working in overseas industries in | PLACE YOUR ORDER NOW AT writtask.com | of external labor for production, the company lowers the costs of production. Fixed and variable costs also form part of | PLACE YOUR ORDER NOW AT writtask.com | do not change in both the short-run and long-run, while variable costs differ with output.  Fixed costs concerning the production of smartphones include rent, electricity charges and equipment and building depreciation (de & Simon, 2016) On the other hand, variable costs include…