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Explain the nature of Production process. |
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Answer» Production process is a continuous process in which goods and services are produced, consumed and the surplus of production over consumption is carried over to the next year in order to produce more goods and services. Since, human wants are unlimited and reoccur frequently, production is to go on continuously. Production becomes necessary also for the maintenance and replacement of capital equipment. Production process requires use of factors of production. These factors of production are required to be organized in order to increase efficiency. Further, selection of appropriate technology is a prime decision to be taken by the producers. |
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