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Hi a question regarding output.

The only definition I've come across of output is to be a product/service.

But can't the output be a resource, from the input of factors of production?

E.g. an intangible resource could be brand. And I combine the factors of input of human capital to produce as output marketing material which serves to strengthen the resource of brand?

Kind regards

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It sounds like your definition of a “resource” is an input.

Outputs that can also serve as inputs for others are called “intermediate outputs” and are a part of many standard models.

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In addition to the answer of Varulle, it must be pointed out that what distinguishes output and input is not the physical nature of a good, but its role in the production process.

An input is a factor of production utilized by a firm in its production process, that is all goods and services that a firm buys on the market and uses to obtain a specific good or service (output). Examples of inputs are intermediate goods, plants, machinery, labor, and so on.

Output is the quantity of goods/services obtained in a production process, that is the result of production, which transforms inputs in goods and services.

Therefore, we can notice that the same good, in physical terms, can be both an input or an output, depending of its role in the production process.

For example, a machine can be an output for a firm producing machines to be sold to other firms, or can be an input if used to produce other goods, for example, a robot to produce cars.

A good can be both an input and an output in the same production process. Think of wheat: it is an input when it is sown, an output when the firm reaps the corn.

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