Question

Which requirement for production is considered the best?Give reason

Answer 1

◆Ekansh Nimbalkar◆
hello friend here is your required answer

Answer 2

Production theory is the study of production, or the economic process of converting inputs into outputs. Production uses resources to create a good or service that is suitable for use, gift-giving in a gift economy, or exchange in a market economy. This can include manufacturing, construction,[1] storing, shipping, and packaging. Some economists define production broadly as all economic activity other than consumption. They see every commercial activity other than the final purchase as some form of production.

Production is a process, and as such it occurs through time and space. Because it is a flow concept, production is measured as a “rate of output per period of time”. There are three aspects to production processes:

the quantity of the good or service produced,
the form of the good or service created,
the temporal and spatial distribution of the good or service produced.
A production process can be defined as any activity that increases the similarity between the pattern of demand for goods and services, and the quantity, form, shape, size, length and distribution of these goods and services available to the market place.

Production is a process that combines various material inputs and immaterial inputs (plans, know-how) to make something for consumption (the output). It is the act of creating output, a good or service that has value and contributes to the utility of individuals.[2]

Economic well-being is created in a production process, meaning all economic activities that aim directly or indirectly to satisfy human needs. The degree to which the needs are satisfied is often accepted as a measure of economic well-being. In production, two features explain increasing economic well-being. They are improving quality-price-ratio of commodities and increasing incomes from growing and more efficient market production.

The most important forms of production are

market production
public production
household production
To understand the origin of the economic well-being, we must understand these three production processes. All of them produce commodities that have value and contribute to well-being of individuals.

The satisfaction of needs originates from the use of the commodities produced. The need satisfaction increases when the quality-price-ratio of the commodities improves and more satisfaction is achieved at a lower cost. Improving the quality-price-ratio of commodities is to a producer an essential way to improve the competitiveness of products but this kind of gain distributed to customers cannot be measured with production data. To the producer, improving product competitiveness often means lower product prices, and therefore losses in incomes, which the producer hopes sales growth will offset.

Economic well-being also increases due to the growth of incomes that are gained from the growing and more efficient market production. Market production is the only one production form that creates and distributes incomes to stakeholders. Public production and household production are financed by the incomes generated in market production. Thus market production has a double role in creating well-being, i.e., the role of producing developing commodities and the role to creating income. Because of this double role market production is the “primus motor” of economic well-being and therefore here under review.