PRODUCTIONPRESENTED BY D.A RADEBE

What is Production? Production means, a process by which resources

are transformed into a more useful commodity or services.

In general, Production means transforming inputs ( Labour, machines, raw materials, etc.) into an useful & desired output.

For e.g. Steel from iron ore, Legal services like medical, consultancy,

hospitality etc.

FACTOTRS OF PRODUCTION

LAND LABOURCAPITALENTREPRENEUR

Land

is an original gift from nature

CHARACTERISTICS OF LAND

Free gift of nature.

Limited in supply.

Differ in variety.

Immobile.

Passive factor of production.

Alternative uses.

Indestructible.

Labour 

is an exertion of physical and mental efforts of individuals

Capitalis

Capital is that part of wealth which is used for production

Capital as part of WealthAny Commodity own by any person is his wealth. But when wealth is used in production process, it is called CAPITAL. For e.g.

A motor cab own by any person is his wealth. But when this Car is used in Taxi Services, then it is called CAPITAL.

ENTREPRENEUR

is the organizer and coordinator of the land, labor and capital.

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