VARIOUS FACTORS OF PRODUCTION

PRODUCTION: The transmission of input to output in a physical shape is called production.

PROCESS OF PRODUCTION:

1- Natural resources to raw material

2- Raw material to raw material

3- Raw material to finished goods

TYPES OF PRODUCTION:

1- GOODS (TANGIABLE)

2- SERVICES (INTENGIABLE)

– Pure Goods (only all types of good )

-SERVICES (consultancies,labour

-Main goods (Past services) – Main Services- past good (car/taxi, house/rent) Mechanical/treatment

-Main services – part good (TV, Phone, electric)

FACTORS OF PRODUCTION

  1. LAND: Natural resources e.g. agriculture, surface water, weather, minerals, light etc.
  2. LABOUR: only by human being, machine work is not labour, labour may be Physical or mental for self service it is not labor labour is only which use for Production.
  3. CAPITAL: The investment and material used for production is called capital.
  4. ORGANIZATION / ENTERPRISES: One who innovate, decide and take invest and risk in production give the structure and process.

SCALE OF PRODUCTION

1- Small-scale production (production on low level)

2- large scale of production (Production on large level)