Question

A manufacturing plant takes raw materials and uses them to create hardware that is sold in retail stores. This describes the ____ function.

a) utility
b) marketing
c) materials management
d) customer service
e) production

Answer 1

A manufacturing plant creating hardware from raw materials exemplifies the production function, which is the transformation of inputs into sellable goods.

Step-by-step explanation:

A manufacturing plant that takes raw materials and uses them to create hardware for retail sale is performing the production function. This function involves transforming inputs like labor, capital, and raw materials into outputs, which are the goods or services intended for customers. In the context of a pizzeria as an example, the inputs or factors of production include flour, water, and yeast for making dough, and tomatoes, spices, and water for creating pizza sauce. The pizza maker combines these ingredients, along with cheese and other toppings, to produce a pizza which is then sold to customers. Therefore, the process described in the question is part of the production function.