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“Production is the transformation of inputs into outputs”. Justify the statement by citing examples from your location. Also built a production function based on your example. |
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Answer» Production is possible only through effective utilisation of factors of production. The factors of production like land, labour, capital and organisation are called inputs. In the production process, these inputs. In the production process, these inputs are transformed into output. Thus a production function stands for functional relationship between inputs and output. In my locality paddy is produced by combining inputs like labour, machinery, land, bank loan and organisers efforts. These are inputs. Thus the paddy production function can be stated as follows. Q = f(X1, X2, X3 ,Xn) Where Q = paddy, X1, X2 ……… Xn are inputs used. |
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