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 )
-Main goods (Past services) – Main Services- past good (car/taxi, house/rent) Mechanical/treatment
-Main services – part good (TV, Phone, electric)
FACTORS OF PRODUCTION
- LAND: Natural resources e.g. agriculture, surface water, weather, minerals, light etc.
- 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.
- CAPITAL: The investment and material used for production is called capital.
- 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)