(i) The term 'Internal Economies of scale' refers to the advantages enjoyed by the production unit which causes a reduction in the cost of production of the commodity.
(ii) For example, a firm enjoying the advantage of an application of most modem machinery which reduces the cost of production.

The Laws of returns to scale explain the relationship between output and scale of inputs in the long run when all the inputs are increased in the same proportion

Marshall says "Capital consists of all kinds of wealth other than free gifts of nature, which yield income."

In Economics, Land means all gifts of nature owned and controlled by human beings which yield an income.

The result of the total product divided by the total units of the input employed. In other words, it refers to the output per unit of the input.
Mathematically; AP = TP/N
Where,
AP = Average Product
TP = Total Product
N = Total units of inputs employed.

(i) Financial capital means the assets needed by a firm to provide goods and services measured in terms of money value.
(ii) It is normally raised through debt and equity issues.
(iii) The prime aim of it is to a mass wealth in terms of profit.

Marshall says "Capital consists of all kinds of wealth other than free gifts of nature, which yield income"
Bohm - Bawerk defines it as "a produced means of Production".

Division of labour means dividing the process of production into distinct and several component processes and assigning each component in the hands of a labour or a set of labourers who are specialists in the particular process the concept of Division of Labour was introduced by Adam Smith.

X - axis represent - Commodity
Y - axis represent - Price
SS - represent - Supply Curve.

(i) Law of supply is associated with production analysis.
(ii) It explains the positive (or) direct relationship between Price and Quantity supply.

(i) The man behind organizing the business is called as 'Organizer' or 'Entrepreneur'
(ii) An organiser is the most important factors of production.

Karl Marx says labour is a value and it is the basis for surplus value.

MP is the addition made to the total product when one more unit of the inputs employed.
MP =\(\Delta \)TP / \(\Delta \)N or MP = TP(n) - TP(n-1)

(i) Production function refers to the relationship among units of the factors of production (inputs) and the resultant quantity of a good produced (output).
(ii) Q = f(N, L, K, T);
Q = Quantity of output, N = Land, L = Labour, K = Capital, T = Technology

Labour represents services provided by the factor labour, which helps in yielding an income to the owner of the labour power. - Marshall.