Question

Distinguish technical and economic interdependence between production inputs.

(The subject is production economics. Not sure what the category must be)

Answer 1

Whatever is used in producing a commodity is called its inputs.the important factors of production are: (i) Land (ii) Labour (iii) Capital (iv) Entrepreneur.

All these four factirs or production inputs are related each other. Each of factors are explaining below,

i) Land:

It refers to all natural resources which are free gifts of nature. Land, therefore, includes all gifts of nature available to mankind—both on the surface and under the surface.

ii) Labour:

Human efforts done mentally or physically with the aim of earning income is known as labour. Thus, labour is a physical or mental effort of human being in the process of production.

iii) Capital:

All man-made goods which are used for further production of wealth are included in capital. Thus, it is man-made material source of production.

iv) Entrepreneur:

An entrepreneur is a person who organises the other factors and undertakes the risks and uncertainties involved in the production. He hires the other three factors, brings them together, organises and coordinates them so as to earn maximum profit.

Above explained inputs or factors are interdependent each other. Land is a surface, only a land cant do anything, so labour is an important factor which relates to land. A labour can work in land for producing something, labour gets wage by doing work on land, so both are depended.

Capital is another factor which also related with others, because machines are the equipments of labour, he is doing his work by using capital.

An entrepreneur acts as a boss and decides how the business shall run. He decides in what proportion factors should be combined. What and where he will produce and by what method. He is loosely identified with the owner, speculator, innovator or inventor and organiser of the business. Thus, entrepreneur ship is a trait or quality owned by the entrepreneur.