 With the start of the module 106, we are going to shift from the consumer analysis to the other aspect or the major aspect of our microeconomics that is the production analysis. And the first topic in the production analysis is the technical constraints. What is the production that we have to study today? Whenever we are dealing with the various aspects in the life, we see that there are the various products and these products are, some are naturally produced, means we can say the rock, the rain and lightning, but there are the many things that are produced by a combination of various efforts and various endoments or the various technological aspect. So likewise, we can see that some products are produced by a group of people, some products they are produced by a single person and likewise. So anything that is produced in the economy and that is utilized for the various consumers or even that can be utilized for various producers for the further production of other things that will be produced by a certain process. And that process generally in the form of the economic terms, it is called the production process. This production process, it involves the utilization, utilization of goods, utilization of services, utilization of technology and all other these type of the forms. So any activity, any transformation that includes a various combination of the goods and the services to have a combination in such a way that it will lead to another third product or the fourth product or certain output, that will be a production process. So to achieve Khuraq, the first thing that the wild animals used to hunt for wild animals, they could also do it in a single form. Some of the big wild animals, some people would do it together, so if we say a team work would be done, if we look at it in the same way, then gradually, gradually, a person started making various weapons, with the help of stones, with the help of arrows, with the help of arrows, then that technology aspect was added to it. He used his intellect, his intelligence to use different aspects. So with the passage of time, there are different ways of using different things. If we say, then it would be a production process, in the form of team work, in the form of a group, there would be a different form. Because then that Khuraq was started to be used in the way of our needs. Now if we look at it again, again a concept of production, it came in this form, that there is a farmer, but he also needs water, he also needs seeds, he also needs grass, he also needs the help of others in different forms, when he would have to utilize the labor of his other people. In the same way, we would have a combination, so if we look at all these things, so various utilizations of endowments, services and the goods, what it produced to the economy, for the exchange of the economy system to run, it became the production process or the production system. And when we talk about it, there is a term that is called the production possibilities. And the production possibilities, if we look at it, it means that one input, which if we say, it will not be used only for one work, it can be used in different times, in different combinations, in different things, in different outputs. That is, if we take the example of labor, then the labor will be used in the industry as well as in the labor industry, then it can be used in both places. If we look at it, then it will be used in the water industry, it will be used in the water industry as well. In the same way, if electricity is our today's input, then the electricity is used by different farmers for their crops, we have to use it in our homes, in which you are in small farms. So this can be the various aspect, in which we say that whatever there are, then there can be various combinations or their quantities can vary, and if we want to utilize them in any place, then in the same way, it can be of different ways to produce one thing. So these all will be covered under the production possibility, aspects available to the entrepreneurs or to the producers. Now coming to the other aspect, when we use a word in economics, that is called the firm. Now if we look at the firm, then from where the name or where it came from, then this is exactly the same way that we talked about earlier, that over the time, a person used to work first, he saw to do something, I need two or four people. So then according to that, he made a team, he made a group, so basically if we look at the firm, then there are different people and their different work, and they are under a team work. And over the time, if we look at a lot of people, then they had different resources, some of which God has given more. Some had wealth availability, so if we look at a lot of people, then over the time the people they were utilizing their resources for further production of the resources in the form of the trade, in the form of the transportation or in the form of the exchange of economy. Now over the time, none of them invested in the form of technology, some made a steam engine, some invested in mining, some saw that they couldn't do anything else, but they have the various capabilities ready to that, that they can gather and organize some people. So when organized, the capacity of that one person is that they can deal with more than six or eight people in different places and put into a work. Using all these capabilities, when a group of people, in an organized structure will say work, then we call it that firm. And that firm becomes an institutional name, which is an organized structure, an organized work, which has a target and that work is done through it. And then the various theories of the market economy of our firm, they arise from this, meaning now the firm can be small firm, in which five to ten people are also there, medium-sized firms can be there, in which the number of employees can be 50 to 60, and there are many larger firms, which if we count, there are the employees over the time, thousands of numbers may be there. So basically the firm is a unit of production, it is a unit of organization, in which different aspects of people's work is divided, their specializations are some, they are just workers as, which we will say that they are an employer, they are owning resources. Now if we look here, then who is the employer? The one who is owning the resources, the one who is the employer, the one who is owning the resources, he is doing different contracts between them, he can hire the workers, and likewise if we move on further, he decides how much of the input we have to purchase, which type of the output we have to produce, what should be the possible or plausible combination of the inputs, which type of the technology we have to utilize. So the decision power, it lies in the hand of a certain person, or a group of person. And generally you all see in some of our firms, we say that there are board of governors, there are owners, chief executives, so likewise these firms, they are run in a very organized manner, in a very organized manner, to have an output or the production setup. And this is the main setup that the entrepreneur, and which we call over the time sometimes, capitalistic entrepreneur, if we look at that capitalistic entrepreneur, then a particular set of property rights is very important. And all the inputs that will be used in all the setups, whether it is capital, there are various forms of capital, in which there is building, in which there is land, in which there is your energy, in which there is your fertilizer, and if you are sitting at different places, look at different industries, which will have its input, where there will be chemicals, where there will be the work of thread, where there will be the work of our soul, where all these inputs are in physical form, if we say, then that will be the form of capital. And labor's skilled labor, non-skilled labor, semi-skilled labor can be formed, different higher level managers can be formed, in which any work of nature can be formed, in any sort of labor form. So these all the aspects that are available, they are basically the technical constraints available to that firm.