How does the input-output model define its system?

The input-output model defines its system primarily through the components of input, output, and limiting requirements. This framework essentially focuses on understanding how various inputs—such as resources, materials, or information—are transformed into outputs, which can be products or services. The limiting requirements help identify constraints that may affect the efficiency and effectiveness of this transformation process.

This clear delineation is crucial because it directs attention to how each part of the system interacts and how effectively inputs are converted into the desired outputs. Other dimensions like profitability, market share, and products offered do provide important context in a broader business strategy but do not specifically define the operational mechanism of the input-output model itself. Thus, focusing on the core elements of input and output along with limiting requirements provides a more precise understanding of how the system operates.