Production process, Microeconomics

Production Process:

Production is a process that transforms factors of production or inputs into output of goods and services. Production may be classified into extraction, manufacturing, commerce and direct services. The factors of production which are used to create goods and services are land, labour, capital and entrepreneurship. The relationship between inputs used and the maximum output that can be produced at a given time period using an existing technology is depicted by the production function. Production may be organised in the short-run or long-run period.

The concept of division of labour may be applied to production. It involves dividing a production process into a number of smaller tasks for each task to be undertaken by a different worker. It has various advantages as well as disadvantages.

Firms are the agents of production (they carry out production). In locating a firm, various factors such as sources of raw materials, labour, power and others should be considered.A firm may be established as sole proprietorship, partnership or corporation.

The policies of privatisation, commercialisation, nationalisation and deregulation can be used to restructure an economy for improved performance but the demerits of them should be taken care of.

Posted Date: 1/2/2013 7:18:22 AM | Location : United States







Related Discussions:- Production process, Assignment Help, Ask Question on Production process, Get Answer, Expert's Help, Production process Discussions

Write discussion on Production process
Your posts are moderated
Related Questions
what are the forecasting techniques

Value Added:Value added in a particular stage of production equals value of total output, less the value of intermediate products (comprising raw materials, capital equipment and o

The largest public utility company in New South Wales (NSW) is the sole provider of electricity across all regions in the state. The monthly demand for electricity in NSW is given

The raspberry growing industry is a perfectly competitive industry. The firms in the industry have a U-shaped LAC, minimum average cost is $8 and the minimum efficient scale is 4 u

Q. Explain about Counter-Cyclical Policies? Counter-Cyclical Policies:Governments may take many different actions to offset ongoing booms and busts of private-sector economy. T

discuss the significance of paration research

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. The narrowness of the definition of the commodity

characteristics of microeconomics

Type of total outlay

RECENT DEVELOPMENT OF DEMAND THEORY:  The basic theory of consumer behaviour discussed in the previous unit can be extended in many directions, and can be applied to cover opt