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Theory of production
- 1. THE THEORY OF PRODUCTION BY MANUPATI PUNITH
- 2. The term ”production ” means transformation of Physical “ input “ into physical “out put”. MEANING
- 3. ENTRY IN TO FIRM INPUT TRANSFOR MATION PROCESS OUT PUT EXIT THE FIRM
- 4. 1 2 3 4 6 5 It helps an individual to fulfill his wants and needs Level of production is an indication of level of living standards Higher level of production leads to higher income & employment This is an index of the rate of economic growth in an economy No country is self sufficient.so they want to depend on others This is called economic inter dependence between detween countries I M P O R T A N C E
- 5. “A PRODUCTION FUNCTION” Expresses the technological or engineering relationship between quantity of physical input and physical out put of a firm or industry Production function Factors of inputsFactors of inputs FIXED FACTORS VARIBLE FACTORS
- 6. FIXED FACTORS VARIBLE FACTORS They remain constant irrespective of the level of output LIKE Land, Buildings, Machinery, Tools, Equipment They remain constant irrespective of the level of output LIKE Raw materials, power, fuel, transport, skilled labour, etc.
- 7. FIXED FACTORS VARIBLE FACTORS They remain constant irrespective of the level of output LIKE Land, Buildings, Machinery, Tools, Equipment They remain constant irrespective of the level of output LIKE Raw materials, power, fuel, transport, skilled labour, etc.