Production involves transforming inputs like labor, machines, and raw materials into more useful outputs or services. The key factors of production are land, labor, capital, and the entrepreneur. Land refers to the original gifts from nature that are limited in supply and differ in variety. Labor consists of physical and mental efforts by individuals. Capital is the part of wealth that is used in the production process, like a taxi cab that becomes capital when used to provide taxi services. The entrepreneur organizes and coordinates the other factors of production.

1. PRODUCTION
PRESENTED BY D.A RADEBE

2. What is Production?

Production means, a process by which resources are
transformed into a more useful commodity or services.

In general, Production means transforming inputs (
Labour, machines, raw materials, etc.) into an useful
& desired output.
For e.g.


Steel from iron ore,
Legal services like medical, consultancy, hospitality
etc.

3. FACTOTRS OF PRODUCTION
 LAND
 LABOUR
 CAPITAL
 ENTREPRENEUR

5. Land

is an original gift from
nature

6. CHARACTERISTICS OF LAND

Free gift of nature.

Limited in supply.

Differ in variety.

Immobile.

Passive factor of production.

Alternative uses.

Indestructible.

7. Labour
is an exertion of physical and
mental efforts of individuals

9. is
Capital
Capital is that part of
wealth which is used for
production

10. Capital as part of Wealth
Any Commodity own by any person is his wealth.
But when wealth is used in production process, it
is called CAPITAL. For e.g.
A motor cab own by any person is his
wealth. But when this Car is used in Taxi
Services, then it is called CAPITAL.

11. ENTREPRENEUR

is the organizer and
coordinator of the land, labor
and capital.