Question

Look at how companies produce things -the techniques that they use as they produce more - and compare it to how you and your friends choose to do leisure activities. When the cost of producing changes, how do the methods of production change? Is it similar to the choices you make when the cost of the leisure activities you do changes?

Answer 1

Ans) We can take the example of the manufacturing of cars.

Nowadays it is dependent on the production techniques which is related to the automation and specialisation. This ensures quality cars with resonable price and in a huge number.This type of production is also called the line and assembly production here the components move from one point tothe next point and there is a value add at each point..For example Assembling of components is done at one point and painting is done at the other point and rest quality inspection at the successive points.Leisure is an activity undertaken to refresh one self and to be fresh again.Planning and detailed description is to be done inorder to enjoy the holidays and leisure here also the need of specialised advice is required like the advice of the travel agent.. The cost of production has a huge impact on the overall cost of the car in this case , if the cost of production rises the demand is hampered because of the loss in the competitive advantage. Hence quality firms like BMW etc will reduce the production but not the quality reduction.Similarly the package of leisure tour is altered according to the cost , it can be like change in the hotel for staying to 3 star rther than 5 star and like that , but the quality time spent with the family is not compromised .