In economics, the term “production” doesn’t refer to the creation of physical goods, but rather to the process of enhancing the utility or value of existing resources.
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According to Anatol Murad, Production may be defined as the creation of utilities.”
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Production is possible by creating utility in more than one way. Utility can be created by the following methods.
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This refers to increasing the utility of a product by changing its form. Examples include converting maida.
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Place utility is achieved by enhancing the utility of a product by changing its location.
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1. Enterprise 2. Organization 3. Capital 4. Labour 5. Land
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1. Organization 2. Technology 3. Capital 4. Labour 5. Natural Resources
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1. Landlord 2. Laboure 3. Capitalist 4. Organizer
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1. Basis for Economic Planning 2. Basis of Economic Welfare 3. Basis of Economic Development 4. Basis of Consumption
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