Importance of production and factors of production, Production is essential because of the following, the action of making or manufacturing from components or raw materials, or the process of being so manufactured.
one importance of production is the process of combining various material inputs and immaterial inputs plans, and knowledge in order to make something for consumption, read consumption theory here
importance of production
Availability of goods and services: Production helps to ensure that goods and services are made available for use by human beings.
The production helps to ensure that goods and services are created and made available to meet the demands of consumers. It involves the process of transforming inputs, such as raw materials, labour, and capital, into finished products or services that can be utilized or consumed.
Here are some key points about how production contributes to the availability of goods and services:
Meeting consumer needs: Production is driven by consumer demand. By producing goods and services, businesses aim to satisfy the needs and wants of customers. This includes producing essential goods like food, clothing, shelter, and non-essential goods and services that enhance the quality of life.
Economic growth and development: Production plays a crucial role in economic growth and development. When businesses produce goods and services, they create employment opportunities, generate income, and contribute to overall economic activity. This, in turn, leads to increased standards of living and improved economic conditions.
Efficiency and productivity: Production processes focus on improving efficiency and productivity. This involves optimizing the use of resources, streamlining operations, and adopting technologies and techniques that reduce costs and increase output. By improving efficiency, businesses can produce goods and services at competitive prices, making them more accessible to consumers.
Supply and availability: Production ensures a steady supply of goods and services in the market. It helps prevent shortages and ensures that products are available when consumers need them. Through effective production planning and inventory management, businesses can maintain adequate stock levels and meet consumer demand.
Innovation and advancement: Production drives innovation and technological advancement. As businesses strive to improve production processes, they often invest in research and development to develop new technologies, techniques, and products. This leads to improved quality, increased variety, and the introduction of new goods and services to the market.
Improvement in the standard of living is a key importance of production: Production helps to ensure adequate improvement in the standard of living of many people.
Provision of employment through production of goods and services
continuous production ensures the employment of many people.
Increase in wealth of people: Production assists people to accumulate wealth as a result of continuous employment.
Increase in export potential: Production also assists a state or nation to boost her export of goods and services to other nations which a major importance of production
Acquisition of skills: The engagement of people in production leads them to acquire special skills …. read more on types of labour
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what are the factors of production of goods and services
SO WHAT ARE THE ACTORS OF PRODUCTION Factors of production refer to agents, components or resources which are combined together to produce goods and services. There are four factors of production. These are:
Land
Labour
Capital
Entrepreneur these factors serves to enhance the importance of production
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SO WHAT ARE THE ACTORS OF PRODUCTION Factors of production refer to agents, components or resources which are combined together to produce goods and services. There are four factors of production. These are:
Land
Labour
Capital
Entrepreneur, the importance of production
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