Explanation
Among the three factors of production, we found that labour is the most abundant factor of production. There are many people who are willing to work as farm labourers in the villages, whereas the opportunities of work are limited.
One-fourth means 25% of the population of Palampur is engaged in non-farming activities like shop-keeping, dairy, manufacturing and transport. Shop-keepers buy goods from wholesalers in Shahpur and sell them in Palampur. Milk from the dairies in Palampur is transported daily to Raiganj. Some traders from Shahpur have set up collection centres and chilling plants at Raiganj, from where milk is supplied to other towns and cities.
Dairy farming is a class of agriculture for long-term production of milk, which is processed (either on the farm or at a dairy plant, either of which may be called a dairy) for eventual sale of a dairy product. Although any mammal can produce milk, commercial dairy farms are typically one-species enterprises. In developed countries, dairy farms typically consist of high producing dairy cows. Other species used in commercial dairy farming include goats, sheep, and camels. In Italy, donkey dairies are growing in popularity to produce an alternative milk source for human infants.
A factor of production may be defined as that good or service which is mandatory for production. A factor of manufacture is indispensable for manufacture because, without it, no production is possible.
It is normal to quality the procedure of production to three factors, land, labour and capital, to which we add organisation. The factors of manufacture are land, labour, capital, and entrepreneurship. They are the inputs needed for supply.
Thus, the correct option is D.
Non-farming activities are the activities which are not related to farming or agricultural activities. Non-farming employment is defined as any form of employment other than farm employment such as manufacturing, shop-keeping etc.
The theory of production helps in:
In the analysis of relations between costs and volume of output: means it is a relationship between the cost incurred to produce goods and the volume of goods produced.
It helps us study the theory of demand of firms in the sense that it helps to take better decisions regarding the production and supply.
It also helps in the study of the theory of distribution at the macro level as we can derive it from the individual units.
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