inputs of production system and how can be they clasify
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Ans. Production system consists of inputs at one end and the output at the other. The inputs and outputs are connected by a series of operations or processes, storages and inspections.
Inputs of a Production – There are wide variety of inputs used by the firms, like various row materials, labour services of different kinds, machine tools, buildings etc. All inputs used in production are broadly classified into four categories – land, labour capital and entrepreneurship. Land is all that is gifted by nature. While the physical and mental human effort spent in producing goods are services is labour. Capital is the man-made means of production like machinery, factory and building etc., and the entrepreneur coordinates the inputs and takes risk of business. Each of these categories can be further subdivided. For example, we have skilled, unskilled and semiskilled labour. Broadly, the inputs are divided into two main groups – fixed and variable inputs. A fixed ‘ inputs is the one whose quantity cannot be varied during the period under consideration. Plant and equipment are examples of fixed inputs. A inputs whose quantity can be changed during the period under consideration is known as a variable input. Raw material, labour, power, transportation etc., are examples of variable inputs, whose quantity can often be increased are decreased on short notice.
Outputs of a Production – Total cost varies directly with output. The more output a firm produces, the higher will be its production cost. This is because increased production requires increased use of raw materials, labour, etc. and if the increase is substantial even fixed inputs like plant and equipment.
Inputs of a Production – There are wide variety of inputs used by the firms, like various row materials, labour services of different kinds, machine tools, buildings etc. All inputs used in production are broadly classified into four categories – land, labour capital and entrepreneurship. Land is all that is gifted by nature. While the physical and mental human effort spent in producing goods are services is labour. Capital is the man-made means of production like machinery, factory and building etc., and the entrepreneur coordinates the inputs and takes risk of business. Each of these categories can be further subdivided. For example, we have skilled, unskilled and semiskilled labour. Broadly, the inputs are divided into two main groups – fixed and variable inputs. A fixed ‘ inputs is the one whose quantity cannot be varied during the period under consideration. Plant and equipment are examples of fixed inputs. A inputs whose quantity can be changed during the period under consideration is known as a variable input. Raw material, labour, power, transportation etc., are examples of variable inputs, whose quantity can often be increased are decreased on short notice.
Outputs of a Production – Total cost varies directly with output. The more output a firm produces, the higher will be its production cost. This is because increased production requires increased use of raw materials, labour, etc. and if the increase is substantial even fixed inputs like plant and equipment.
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