Influence of Factors of Production on Efficiency of Production Systems

Abstract

In the course of functioning of firms the uncountable set of variants of use of factors in various combinations is supposed. Diversification of combinations is caused by scientific and technical progress and a condition of the market of factors of production. Scientific and technical progress and technical revolutions lead to occurrence new (interchanged) factors and a new product. Possibility by means of the factor as a result increases to produce a product so much, how many it is necessary for compensation of the factor and an additional product which is not necessary for factor compensation. This additional stock of a product, as a matter of fact, is an additional product. With its production probably further increase in production. The conclusion from here follows: the best use of incomes of production is a condition of the further increase in its scales, a condition of expansion of reproduction. Thus, as a result of connection of factors of production work products, set of material benefits are created. The quantitative relation of volume (weight) of the received product to the work spent for its production, characterises labour productivity. Important problem at studying of factors of production of their influence on efficiency of production systems is the problem of an optimum combination of factors of production

DOI: 10.5901/mjss.2015.v6n3s7p411