Factors that determine production

[Mastergp]

Production as we know is seen as turning of raw materials into finish product, and It has some major of important of production that is it ensure the availability of goods and services, it also improve the standard of living of people by creating of employment because when a new firm is is created manpower would be needed which would bring more jobs to the people, and through productions people accommodate wealth and riches and still through production people are being lead to acquire a job or special skill though which we will provided with want we need.

It has some factors that determine it, they include :


Land, labour capital entrepreneur each has it own form in which operate they include:


Land: land is a free gift of nature it include all the natural resources such as the soil, forest, mineral, resources, rivers etc


Labour:

Labour involves all form of mental and physical effort used in the production of goods and services. The reward for labour is wages and salaries. And labour could be skilled or unskilled labour.


Capital:

Capital is manmade asset use in the production of goods and services, these include, physical cash, motor vehicles, raw materials.

 

[Axis]

They are the three factors which can affect production. For example when the workers lack the insight and idea to handle technology equipment that is been on able to know the technology know-how this can affect production and the speed in which goods are produced can be slow. And also if the demand for goods or commodities is low there will be a low supply of goods because such business won't like to encounter wastage of the goods and because of the low in demand and so therefore they now supply their goods in small quantity and because of these production have been affected. Even the source of raw materials used in producing these goods also affect production. When the distance of the raw materials to where the goods will not be manufactured into finished goods is far the business or company will now find it hard in transporting these goods from a source of raw materials to where it can be manufactured. And that is why it is important for businesses to look into the distance of the raw materials when trying to establish a business