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BUSINESS
ORGANISATION
What is productivity
production function?
the
aggregate
business
and
THE PRODUCTION
FUNCTION
THE PRODUCTION
FUNCTION
Here, our assumption is that firms always try to
produce efficiently.
What are two main techniques of production?
Capital-intensive
Labour-intensive
These techniques are part of the production
function.
Millions of different production functions one
for each and every product or service.
weight.
BUSINESS ORGANISATIONS
The Nature of the Firm
In every type of economy, production function is
carried out by the business organisations, small,
medium and large.
Business organisations exist for many reasons,
but the most important is that they are specialised in
managing the process of production.
They perform the following important functions: Economies of mass production
Raising funds
Organising factors of production
THE INDIVIDUAL
PROPRIETORSHIP
Mom and Pop stores Family Businesses.
May do a daily business of a few dollars.
Tremendous efforts are needed to run these.
Working hours 50 or 60 hrs per week, almost no
vacations.
Average business life one year.
Still preferred by some.
There are a few success stories as well