CMA Foundation | Economics | THeory of Production | L2 | Dec 2026 & June 27 | Adv. DIPESH

[00:00:14]Hello, good afternoon everyone, how are you? How are all the online people? How are you? Great, absolutely great fun, did he send a great link? Sent it. Good great.

[00:00:45]Where were you for two days? Had gone home. I was at home. Gave lectures online.

[00:01:00]Hey, what's there to laugh about now?

[00:01:02]I have asked only normal things.

[00:01:05]Who else is absent? Where? How many times are you absent? So, it means your absenteeism in class continues.

[00:01:14]Class continuation is low. Yes.

[00:01:18]Why? Where did you go? Had gone to the village. Ok. January is not too far away. It is not even that much. It means there is some time but not so much that we can start from scratch every time. Who else was absent? He is very absent today. Where did that bike at the back go?

[00:01:39]Hey lady, where are you?

[00:01:45][laughs] Look friend, if I had told you then there would have been a lot of controversy at home. You all know a little about my history, right?

[00:01:57][laughs] So come guys, Ram Ram brother, well, I don't know, son, just son, now we will talk less among ourselves, just say Jai Bappa ki Hare, come son, tomorrow we will start the fatfat fatfat.

[00:02:16]Yesterday I started the theory of production. I told you one simple thing.

[00:02:21]Production means making goods. So that is called production of goods. And it's not just about goods here. Here we talk about age well age services. So production of goods and services. And we saw that the thing we needed was not available readymade in the market.

[00:02:36]Meaning it is not available readymade. It does not mean that you buy it and sell it.

[00:02:40]It has to be made. This is a known as production. Now it is made in two ways.

[00:02:44]Either you would have taken the help of machinery or you would have taken the help of labour. Is it equal? So this thing happened. Production: We saw that the output that comes after using the input, that is, the finished goods that you make after using the raw material, what is it called? Production speaks. Then we looked at the factors of production. I had seen it inside it, first of all we had seen it in factors of production, yes I will say that thing which you were saying at this time, then see, this has given me the opportunity to speak, hey message him brother, if you are not able to hear then go out brother, yes understand the matter a little, I cannot stop the class for you, right, because you are a boy, come, no, if it were a girl, she would not have acted like this, a girl is intelligent, for the first time I said something good, no, a girl agrees, which are the factors of production, first of all we started with four factors of production, land, labour, capital and entrepreneur, okay, now what happens is we will learn about each factor one by one, see, if we want to do production or manufacturing anything, then for that, a place will be required on which we will carry out this activity, that is called land. Now you would have bought the land in two ways, either you would have bought it or you would have taken it on rent.

[00:04:18]But generally we considered here that you might have taken it on rent. Look, if you have purchased it then you will pay EMI and if you have taken it on rent then you will pay rent. So, what do we call the return we pay on land for using it, son? Rent. This is called reward in a better language. If we use the land, we will have to pay some reward for it. He will have to give some return.

[00:04:43]That is called rent. Now first of all let us understand what are the features of land? But before understanding that, we will understand what does land mean? So yesterday we saw that land does not just mean the surface of the earth.

[00:04:56]This one is in general sales.

[00:04:58]In economics, land means on the surface, above the surface and below the surface. Is equal. After that we saw Land Has a Certain Features. Peculiar Features are some of its features. First of all, the land that we have got, the earth that we have got, nature has given it to us for free. Okay, right? It is a free gift of nature. But I also explained to you legally that it does not mean that I can judge you at any time. You have to buy it, son. Who will you buy that from?

[00:05:27]You will buy it from the government. Seconds Limited Supply. Our map of India is fixed. Isn't it? Our geographical boundary is fixed. You ca n't go out of it. So what is the supply of land that we have? Is it limited or not? The answer is yes. Two points are scored.

[00:05:44]Third was your immobile factor.

[00:05:47]What is a mobile? Which is movable from one place to another. It is movable from one place to the third place.

[00:05:53]And it is movable from third to fourth place.

[00:05:56]This is movable. This is called mobile.

[00:06:02]And the one which does not move is called immobile. Like take this classroom and assume that the children are suffering. It rained too much. Having trouble climbing stairs. I will keep it on the ground floor today. Okay, right? No. It's raining, I want fun on the terrace. I will keep it on the terrace.

[00:06:17]Is this possible, son? No. He took out this matchbox from below. Placed it here.

[00:06:20]Removed from there, kept there. How is this? These mobiles. You cannot move it. Ok? Then forth one comes diminishing returns. What does diminishing returns mean?

[00:06:32]Because what kind of land is this? Fixed. Now I have this classroom. This is fixed. Now what will it have of its own? Capacity. If you employ more people than that capacity, what will be the return from it? Less. Let me give you a simple example. Let me give you a simple example. Have a kitchen in your house. Everyone has a kitchen in their house.

[00:06:56]Ok? Hey, I am saying it. I did not say that there is a question mark or not. This is a sentence. So everyone has a kitchen in their house and the size of the kitchen is different in everyone's house. You know how many people can work freely in your kitchen.

[00:07:08]Now, like in the kitchen of my house, because of the fridge and all the storage facilities, three people can work there very freely. The fourth one will come and disturb. Ok? Yes. So genuinely if there is a guest at our house and someone says hey, let me help you, the family refuses saying they don't want help, it's a simple matter, these three people are doing the work well, if the fourth one comes, he does n't know that he will be pushed, he will be punched, if dal falls from here, rice falls from there, so first he will get pushed [laughs] and then we will punch, right, if there is a push, he will punch, right, so now it's a simple matter, dal falls, this may have fallen in the kitchen, so what do they say, no brother, how many people are needed in the kitchen, only three, because if the fourth one comes, he will do some work, he will not increase the work, he will reduce the work, he will not be able to work freely, this is called diminishing return, isn't it? What is this chapter, son, if you go from tomorrow to the day after tomorrow, you will lose your memory, son, you are terrible, how can anything happen, I mean, open your eyes, it is written there in English, today's second chapter, the second lecture.

[00:08:23]No? Yes, if the second three of motion is correct then there is no problem. Where do they come from?

[00:08:35]Ok. Naina is asking guys, do you know why sir has left the chapter on basics incomplete? I have not taken it incomplete. Let me tell you a simple one. Whenever I take a chapter, I take it completely. Doesn't keep it incomplete.

[00:08:50]Son, I started the chapters of banking from the third batch.

[00:08:53]We started the second one with demand supply elasticity. Is anyone there?

[00:08:58]Can anyone say that brother, your demand supply is half smaller? No. The banking one was also completed. After that, there was a small discussion, son, the day before yesterday. Isn't it?

[00:09:07]Even the day before yesterday, there was a question about which chapter to take?

[00:09:10]Take this one, take this one. Then voting took place.

[00:09:12]We did not agree. We took MCQs that day. Isn't it? Then it happened like this, son, a little bit, okay sir, the basic concepts are incomplete, please send me the link of all the lectures, son, where you see the basics, okay, there is something else there and that is of the last batch, there is something else behind it, those are for revision, where you are sitting, I have to find out the land diff in this batch, son, and if you find it, tell me, I will get it done, your 100% syllabus will be done twice, then today we will talk about labor, labor means this is the hand of a laborer, Katiya.

[00:09:46]Ok? Labor means worker. Now how does labour help in production? This helps production in two ways.

[00:09:53]One, he uses his sharp mind.

[00:09:58]Okay, right? One uses his brain and the other works hard.

[00:10:04]Ok? Brain means that it uses mental efforts. And he works hard, meaning he uses physical efforts. Isn't it?

[00:10:12]What we call action. Now look at Labor in the Ordinary Use Labor stands up for a physical labor. Generally, labor means someone who does more physical work. But it is not like that. That also requires brains, brother.

[00:10:25]I respect them too. In economics, labor means physical as well as mental.

[00:10:30]Why didn't you say Jhendu Bam earlier? Services Engage in the Production to Earn Income. Look friend, why does a laborer work?

[00:10:37]Why does everyone work? To earn money.

[00:10:39]Only that money has different names. Like if I do monthly work then what do you call it? Salary. If I get daily money, what will I say to him? Wedges.

[00:10:49]If I sell any goods, I will get a certain percentage of it, that is called commission. Isn't it? After all, it is my income.

[00:10:58]This is from my earnings. What should I say better than talking about income? From earnings. Is it equal? No. So what do we pay the doctor now? Fees. But what is that about him? There is earning. Did you understand? I sell something. I made profit from that.

[00:11:10]What is that to me? There is earning. So here we do it for earning. Do it for income.

[00:11:15]Classical economist Karl Marx considered labor as the sole factor of production.

[00:11:23]How is that? How many factors of production were there? There were four factors of production. Ok? And son, if anyone has any question, it is better to ask the guys. Ask Guys.

[00:11:33]Guys, I mean, ask me. Leave it. Isn't it?

[00:11:36]How many factors land labour yes okay now stop entrepreneur land labour capital entrepreneur and this Karl Marx says that labour is the only production factor why do you think so the reason behind this let me tell you simple I have land I have land in the village but there is no one to look after it, it is lying there just like that it is in my name but if it is lying there then does it mean that farming is being done on it or not. Will there be fruit and flower trees planted on top of it? Will a building be constructed on top of it? The answer is no. What does it mean? Land can't do anything by himself. It is very simple. Land can't do anything by himself.

[00:12:22]Is equal. Hey, you say yes first. You say yes or no. Yes. Yes sir. I ca n't do anything on my own, sir. The second is the second capital. I have ₹5 lakh. Isn't it? And I have kept them in the safe at home.

[00:12:35]Now tell me one thing. I opened the safe a year later. Will that 5 lakh become 6 lakh? Will that be 4 lakhs instead of 5 lakhs? The answer is no. Because they cannot do anything on their own. If I want to make money from money then I will have to invest it somewhere. Either it will increase or it will decrease. Something like this will happen.

[00:12:54]But those 5 lakhs mean he cannot do anything on his own. So these two factors are passive factors. How is it factored?

[00:13:03]Passive. What does passive mean? Those who cannot do anything on their own are called passive. And what does active mean? Who can do something on their own. Labor works by itself.

[00:13:14]Ok? He will use his brain. Isn't it? He will use his physical activity and he will work. That is why it is said that this is the most active factor of production. That is why it is called factor of production. Sir said entrepreneur.

[00:13:26]Oh yes. Now let me explain to you the roles of all four.

[00:13:28]Land is a piece of land on which we will do production manufacturing. But what do you need to get this? Capital is needed.

[00:13:36]What is needed to give him money?

[00:13:37]Capital is needed. No one is going to work for free.

[00:13:40]Ok? Now it is capitalized. Now what is the role of this entrepreneur? The most important role is that of the entrepreneur.

[00:13:46]Why? Because if someone brings together these three factors – land, labour and capital – then it is an entrepreneur. And who gets the work done from them? Entrepreneur.

[00:14:02]For example, let me say that I organised an event.

[00:14:07]What does organized mean? I brought all the things required for that event together at one place. Must have brought the DJ. Must have brought food stalls there. Must have brought the gaming zone. Hey, whatever it is, I brought this and that for photo stand one. I organized everything. I organised it, that is, I brought it to one place and got the work done from them.

[00:14:25]This is an entrepreneur. Now entrepreneur means businessman.

[00:14:29]What does a businessman do? He buys the land, brings the raw material, brings the labour. And what will he get these three to do? I will get the work done.

[00:14:37]This is an entrepreneur. The responsibility of arranging these three things lies with the entrepreneur. And the entrepreneur works the hardest.

[00:14:46]And in the end, if there is a reward, it goes to the entrepreneur. How? Suppose I have a shop and today I sold goods inside the shop throughout the day. I have money in my pocket. Will I take all the money home or not?

[00:15:00]I will have to pay the supplier; the shop is on rent; I will have to pay rent to my landlord, whoever is my owner. Then later I will pay salaries to my laborers and my employers, I will pay them wages and whatever is left at the end is profit. This belongs to me, okay? Who does it belong to? An entrepreneur? There are two types of profit.

[00:15:24]One is gross profit and the other is net profit. What is the difference between gross profit and net profit? Very good. I must have read this in accounts. You must have read in accounts that what comes after deducting direct expenditure is gross. What comes after deducting indirect expenditure is net. That is why you must have read this much.

[00:15:52]All direct expenditures come in trading account. Do you think so? My first year of teaching was so horrible, I taught nine different subjects. I had taught him, I could see the money, so I took everything. He said he would teach him, yes, yes, yes, I taught everything. I mean, there wasn't a single subject that I didn't teach at that time. Then later I decided that this won't work, we should specialize a little so that we can stick to one path. But how do I know which subject is good for me? I will know that only after teaching. According to me, I do this thing well, but according to you, I might not do it. So that's why. So, I have understood labor now, son. An entrepreneur is generally what he gets.

[00:16:37]Net profit is the money that comes to the poor fellow after deducting all the expenses. What does it mean? He takes the most risk, Raja. As if he does n't have any money left to pay everyone, even then there is a problem. So come, let's talk about labor. We have seen labor.

[00:16:54]We have seen labor.

[00:16:57]Very good, Sony. Yes, it is equal. Come, very good, son. Direct expenditure, gross profit is commission on sale of goods.

[00:17:18]Sir, I have just joined the class, so teach from the beginning. Come. Come offline son, I will teach you from A B C D, son, come sit here and teach me. Hey brother, should I make you sit here next to me and teach you from very close.

[00:17:36]Ok.

[00:17:42]Hey, reading does not mean reading Hindi.

[00:17:46]Read, read.

[00:17:51]Features of labour. Features of Labor First Labor is Inseparable What does Labor is Inseparable mean? Ca n't we separate the two labours? This is not what he is saying Raja.

[00:18:04]Hey, it's not like that, listen. Labor is inseparable from laborer. But in the case of other factors land and capital are separable from landlord and capitalist. What is he saying? Listen quietly. First let me discuss Ah Land. So capital stock is what you should understand. Now this land, like this classroom, belongs to someone else.

[00:18:27]Suppose there is an X Vz, suppose this is Rohit.

[00:18:29]This class room has been purchased by Rohit. Can I buy this classroom with that money? The answer is yes. So does it mean that we can buy land from the landlord? The answer is yes. You can buy it sir.

[00:18:41]What did we do to his land?

[00:18:42]Separated it. What did you do? Separated it.

[00:18:45]Now who will have the money in the capital?

[00:18:47]I worked hard and he gave me money.

[00:18:49]Whose money did we become? Has that capital been transferred to me? The answer is yes. But can you separate the labour from its talent and skills? Such a painter, what wonderful paintings he makes.

[00:19:02]Can you take his skills from him, son? The answer is no. The answer is no. This is what he is telling you. He says that you cannot separate labour from labourer. You cannot separate his skill and his talent.

[00:19:18]Okay, right? So then you will hear the dialogue in the movie. You can take away my income but you cannot take away my skills.

[00:19:24]I will rebuild my empire.

[00:19:26]Leave it brother, it will take a lot of hard work. Ok?

[00:19:30]Labor is inseparable.

[00:19:35]How are you doing, son? One day, when you get angry, punch me so hard that I get half a punch. Do n't you get angry? Yes. If you feel like believing something, then tell me. Isn't it? I will give you something heavy.

[00:19:48]Hey expensive means it makes you feel that labour is perishable, hey perishable means, isn't it like this that you call the labour and he is rotting while sitting, isn't it, boss, give him the work of rotting, it doesn't happen like this, understand the meaning of labour is perishable a little, it is the literal meaning, the English meaning, not taking it, now suppose we take half a labourer, okay, yes we will take Rohit only, earlier the boss had come. Isn't it? What kind of name is this? Rock the party. Isn't it? Now listen. Rohit and Rohit are laborers. Ok? Now what work does Rohit do, son? Suppose he does painting work.

[00:20:32]What kind of work does he do? Of painting. And I asked him, brother, how much will you charge for painting the classroom? So he said, he said 25,000, he said yes. Hey, I said Rs 25,000 for one classroom, yes I will use A1 quality colour. The brush is expensive. Adding such and such grinding paper vapor and my wages, he said 25,000, oh my god, don't do so much, you do one thing, tell me how much is your wages, I will bring the rest of the raw material, paint brush, that's all, you did not say that you will bring it, okay, if you bring everything, I will take ₹10 [sound of clearing throat], I said okay, done, no problem, okay, poor man, give the money, okay, deal done for 10,000, I said come on time, he said yes, we will work from 10 in the morning to 8:00 in the evening, we do not work beyond that, at 10:00 the guy came, took all his people who sell themselves and now he sat down. I said, hey, how did it go? He said that painting work. He said, hey friend, I forgot. No problem, you sit, I will come soon. Brought the goods.

[00:21:26]Goods means goods. Oh goodness goodness, yes, I just went to the paint market. And I don't know what happened that day that the shops in my area were closed. Then I came to the city. Came to the city. Then I found out that the shops were closed. Then I came to know that brother, there was some protest that day. All the shops are closed. Isn't it? I roamed around the entire village and in the process it became 4 in the afternoon and now I went back home. I said, father, I have not found the goods yet. I said brother, do one thing.

[00:21:51]Start working from tomorrow. Isn't it? He said, okay, no problem, give me today's wages. Give me today's wages. So it is a simple matter, isn't it?

[00:22:01]He said, brother, look, I have come. If you say so, I will wake up by 7-8:00. You bring the goods. You are the one saying go home. I will kill the paint. I will do the grinding work today. But because you did not provide me the raw material. Did I give my time or not? So his labour, that is, his service that day, was wasted. That is called perishable.

[00:22:28]You will have to use that service on the same day it is provided. I ca n't say this to him. Ok? Come from tomorrow. I will make the payment from tomorrow.

[00:22:35]No, he will have to pay today's payment. Okay, right? Auto cab also remains the same. You booked an auto cab and it came and stood at your door.

[00:22:44]You cancelled. You have to pay charges for that, right? Then you say that I did not even sit in your auto. He says brother sit down. You don't sit. I will come, you will have to pay the charges. The reason is simple. If he comes and waits, then he is called perishable. His services for that day were wasted. Ok? If a worker does not find work on a particular day, the labor is lost for that day; like other factors of production, labor cannot be preserved.

[00:23:10]We cannot keep it safe. Did you understand sir? Ok? Yes. Let us go. Supply of labor. Supply of labor. Labor offers more labor at a lower wage. Hasn't this thing gone a little wrong? Isn't it? When wages rise beyond a certain level they prefer to enjoy leisure. What does leisure mean?

[00:23:34]Rest. Okay, right? And supply less labor. He said he did not understand. Now look, he is not a labourer but I will try to understand. Now, initially when we started teaching, I started teaching, so now you can say that I came into teaching. Now take an example. Do n't bother anyone too much. Now he asked, brother, how much will I get paid for one lecture? Suppose you will get ₹500.

[00:23:58]Now I had no work, so what would I think? If I take more lectures, I will earn more money. So I saw that if I take six lectures of one hour each in a day, then the daily wage will be Rs 3000.

[00:24:15]Okay, right? Pushpa is fine, right? Six lectures.

[00:24:18]But then what did he say later? Brother, if you take the seventh lecture, you will get ₹800 for it. Ok? How many will I get? ₹800. I said yes, okay.

[00:24:30]I extended it by another hour. I said okay. I will take seven lectures. Now you are earning ₹3800.

[00:24:37]Okay, right? Accounting for every penny. Then he said, listen, if you take the eighth lecture, you will get another ₹1000 for each lecture. But which one? For the eighth lecture. Edition Oh wow.

[00:24:47]Now they said that one lecture will cost ₹1000 if you teach for 8 hours [laughs] with us, it is fine, I taught for 8 hours, now it has become 8000 directly, oh forget it, what about you, I have given you a lecture for ₹1000, now they said listen, bring 10 lectures now, but you will get ₹1500 for one lecture, I will say run away from here, what will I say run away from here, why run away from here, hey I am a human being, brother, I can manage my life well within ₹8,000.

[00:25:21]So why should I make extra effort? I will not mean it.

[00:25:26]I will rest during that time. I will say that now I will throw tantrums. Why? Because earlier I was murmuring for 8000. I will say, do me a favor and give me Rs 6000. But I don't want 5 hours. Now what have I done with the time? Reduced it. But it is not that as the wedges are increasing, I increased my time. I increased the initial. In the beginning I increased it. But at one point I stopped.

[00:25:50]What does a labourer do after earning as much money as he wanted and needed? He says, brother, I will not work more than this. What should I do? I will rest. Let me give you a best example of this.

[00:25:56]People from Pune will understand this quickly.

[00:25:59]Ok? Auto wala, auto wala from Pune.

[00:26:02]If the auto driver of Pune earned money, he would park his auto under a half-shaded tree in the afternoon and sleep. You tell him. Hey brother, will you come here? No. Why? It is about resting. Hey bastard, I don't want to stand on the road with an auto.

[00:26:14]No. Because when will he do that when he has earned the money.

[00:26:19]I have a friend like Sem. What is his work? Cab. You understand the cab, right? Isn't it? Yes, he also drives a bus. So is the cab job. Isn't it? Son, this is how it works.

[00:26:31]Now don't misunderstand me. Not this one, no, just this one.

[00:26:33]This one is a bus and truck. There is such a car.

[00:26:36]Yes. Yes. This is my observation. It's okay to watch sometime, right? It should look like a truck. Now listen, listen to me. And I didn't put on gear that's all.

[00:26:51]After this, the more I put the gear, the more automatically its gears keep moving.

[00:26:56]Ok? I said it is gear. Listen to me.

[00:26:59]So what happened now? He works as a cab driver.

[00:27:02]Cab. Now what he does in the camp is that from Monday to Friday he drives his vehicles to IT companies and on Saturday and Sunday he takes trips to Lonavada, Mahabaleshwar, Matheran. Isn't it? Now what happened in between that his vehicles are engaged in IT companies.

[00:27:18]But he drives his own car around the city all day so that he doesn't have to work Monday to Friday.

[00:27:22]Now what does he do very often?

[00:27:23]When he got a weekend trip on Saturday and Sunday, he earned good money and he did not work on Monday. He will sleep at home on Monday.

[00:27:30]How many times do we say at home today that we are not going to go today, we will pass time today, why is he in the mood because he has earned as much money as he needed, now what will he decide as to how much rest he should take, that is why the curve of labour is backward bending, now how this backward bending happens, I will explain, okay, how backward bending happens, I will explain, look at it calmly, okay, this is the x axis, this is the y axis, okay, here he is giving you your wages, and here his hours are coming, let's say, so what will he do, he will work for a certain time, he will do it, after that here he will say that it is okay, now I will not work more than this, on the contrary, now I will work less than this but will charge more money, so now earlier it was increasing, after a point it is going backward, so this is called backward bending, what is this called, backward bending, like you must have seen teachers, doctors.

[00:28:35]What does the doctor do first? When a new doctor arrives, he runs his clinic for a long time. What do they do later? Let us reduce the time so that this doctor will be available only for 2 hours in the morning. If I get a compulsory appointment before coming 2 hours in the evening then it is fine, otherwise what did he do the next day? Time was restricted.

[00:28:51]I will not work more than that.

[00:28:53]I will rest for the rest of the time. This is called that now he is not a labourer. But understand one thing.

[00:28:58]This is called backward bending.

[00:29:02]What do you call this, son? Backward bending. Did you understand son? Yes.

[00:29:07]Come on son. What is backward bending? Annie son, please wait a little. Don't go so far ahead of me.

[00:29:12]This is called backward bending. Did you understand, King? Come on, you are a very cute child. It observes that.

[00:29:20]Keep this for MCQs, son.

[00:29:22]Sometimes he asks you from Kopche Kopche how the labour cow is? Then you will abuse. It will not happen. I had told you. I had told you. There is not a single thing that I did not tell.

[00:29:31]Fourth One Week Bargaining Power. Their bargaining power is weak. First of all, labour means one who has special skills.

[00:29:39]But the labour will be educated.

[00:29:42]Not necessary. I will not say that all are uneducated. Will remain educated. Not necessary.

[00:29:46]So he does not know about his rights. I do n't know about the rights. He does not even know that the government might have made such a rule which states that the labourer should get at least this much wages. He has no awareness. Then someone will fool him.

[00:29:58]Hey brother, how much work is there? Now suppose I asked you to get my house cleaned completely for Diwali. Suppose you want all the sweeping and mopping done. I brought that labour. He asked how much will it cost? He said, Sir, give me ₹1000. I said it is very expensive, friend.

[00:30:12]Last time I gave ₹500.

[00:30:15]Tell me the truth. I will give you ₹700, it will do. He will say, it's okay sir. I'm leaving. I have arrived. Big bargaining power. Is he able to bargain? I will not work. I will do it for a thousand. I know how much work I have to do. His bargaining power is very weak. Lebanon has less bargaining power as it is a penitent thing. Because if he does not work that day then he will not earn any money. He will think that it is better to earn ₹700 and go home empty handed. In the same way trade unions are not strengthened. So they can't fight for a better wage. And the last one comes difference in efficiency of labor. Now look, you know everything. Let me give you a simple example. There is labour. There are two laborers. There are two of them, one of them is 35 years old. And there is one, yes I am yes, 55 years old. And what is their work now?

[00:31:09]Suppose their job is to make sack grandsons. Okay, right? There is a bag like this, which can be carried on the shoulder.

[00:31:16]Not there. That is the work of lifting. Now tell me who can do more work out of this? The one with 35. Generally we believe that he is fit and the 55 year old might have aged a bit.

[00:31:29]So the thing is that every labor has its own quality. Every labor has its own efficiency.

[00:31:36]So he is telling that to the same thing, son, that there is difference in efficiency in labour. Some labor has a more efficiency. Some labour have less efficiency Some labour have no efficiency Just sit at home and keep eating ok, isn't it, the poor labours are feeling very bad, son, the way I am studying, I need to study a little more and then I will pass, ok, after getting hired, their demands also increase a lot, I think he must have told him on the way, sir, give me some tea, ok, come on, if anyone has any problem in the labour, let me take a good look at the labour, ok, if anyone has any difficulty, then tell me, I will wait for two hours, there will be no water, I said this because those banking notes have not arrived yet, friend, I was asking him from here for training for something else, oh Rudra bhai [laughs] one, tell him to send the handwritten banking notes to him, he should upload them.

[00:34:09]Yes, I had sent it to him yesterday only.

[00:34:13]Yes, I went brother, let me check first, I found out that the notes are gone, son, for that Ishaan brother, first subscribe to the channel so that you do not have to rely on the link, otherwise keep doing the lectures regularly, otherwise you will not face any problem, so done.

[00:34:55][screaming] Now we're moving to the third side.

[00:34:58][laughter] Moving on to the third.

[00:35:01]Ok. I will give it to you on the third side, son Yogesh. I will give it to everyone. I don't have to take or give anything. Come on.

[00:35:06]We are moving towards the third direction.

[00:35:08]That is moving on to the third point.

[00:35:09]That is capital. Look brother, what is capital? Capital means money. What we invest in the business is called capital. And who made this? This has been made by humans.

[00:35:21]Which is the manmade factor of production? Capital. Look, in the ordinary sense capital means for an individual and a firm. Money in the Money is a form of capital. money. What do you call a person who invests money in business?

[00:35:34]Capital when it is used for purchase of machinery, tools, raw materials, extra.

[00:35:39]Ultimately it is the manmade goods. I told you this is man-made factor of production.

[00:35:44]What does it mean? We have created money and the money we invest from it is capital. This is called one thing important.

[00:35:51]That is what helps in the production of goods. These are very productive in a different sector. This is called further means of production. What do you say? Further means of production. What is meant by further means of production? I will explain it in a very simple way. In a very simple way. I had ₹1 lakh and I invested this ₹1 lakh in business.

[00:36:24]Ok? Now guess what I do? I make shirts. I have a shirt manufacturing business. Now look, he made a shirt for Rs 1 lakh. So where will these shirts worth Rs 1 lakh go now? Will go to the market to sell. They will be sold in the market, then the money will come, then I will distribute the money and my production will start again, till then should I stop the production, suppose I have invested ₹1 lakh in the business, then what do I tell the labour, brother wait, if you sell some shirts then I will get the money, I will give you the money, then why has the rent not come, this is rent, hey wait, my goods will be sold, money will come, I will give you the rent, don't worry, if the electricity is cut, hey wait, the shirts will be sold in the market, I will give you the money, tell me yes or no, okay, and till then what will I do? I will not make the shirt right now.

[00:37:09]Why? Because there is no money. Will stop production. The answer is no. If you want to continue production, it is important that you have money. Production is necessary. Brother, if you know, Ola Uber people first brought this meter issue in between and they said that brother, you will have to make direct online payment.

[00:37:31]See, there is application payment, they will not accept it. He says make online payment. I will come if you make cash payment. Why Reason?

[00:37:38]Because he would get it directly in his account.

[00:37:40]Earlier what used to happen was that it would go to Ola account and then it would go to their account at the month end or in 15 to 20 days. Till then he does not get any money. So who is investing in the petrol and CNG that is being used in his car? He is doing it himself, is n't he? Its production is going on on that basis.

[00:37:56]What does it mean? You will have to keep investing money in the business on a continuous basis.

[00:37:59]That's why it is called further means of production. What do you say son? Further means of production.

[00:38:08]Let's move ahead. Yes, if you want to do production for the future, capital is required. So let's look at the functions of capital. Capital Supply Tools and Machines. Ok? Capital not only supplies tools and machines. Capital also supplies meaning capital decides which tools and equipment you will buy. Sir, I did not understand. Very simple, I want to buy a car. Is n't it madam? I want to buy a car.

[00:38:35]Which one should I buy?

[00:38:40]Buy it. I start it by hitting the yellow strap.

[00:38:45]Ok. Which one to buy?

[00:38:48]Buy a BMW. Ok. Meaning she will scratch him. Isn't it? Which one should you buy, madam?

[00:38:57][laughs] I can't get a better remote than that.

[00:39:02]Nano is good, it is my favourite car.

[00:39:04]No, KoF is my favorite. It is my favourite. Yes madam, please please please don't call an auto nearby.

[00:39:09]Four wheels, tell me to do it once. But I have said car.

[00:39:17]Swift is there. Should I get the scooter welded and bring it?

[00:39:25]Yes for four wheeler, would anyone like to give some input which car is yours, Mercedes K, right? And does anyone have any suggestions, yes which car should I buy, buy Gypsy, okay, yes buy Rolls Ryce, and which one should I buy, Scorpio, old one, should I buy the N one, okay, which one should I buy, son? Yes, now you will say, whoever gets the glasses tinted [laughs] okay. Brother, at the very end is the Range Rover. Hey, you should ask me about my budget. You didn't even ask about the budget. Now it is not okay.

[00:40:11]Look, if we talk about Nano then bank account on S on S. Today you are opening your mouth for the first time. I will buy bank account 2025 on S today. Ok?

[00:40:30]Now listen, tell me according to me and not your own opinion.

[00:40:36]Ok? Now listen, the main thing is left. That is the budget, how much money do you have? Is n't it the capital? That is why the answer I gave today was based on the bank account. I did not give it anyway. Well, if I give it then I will definitely get it emptied and come back friend, even if I sit in a corner for a day, oh hey, then the next day I will send the money to the college guy [laughs] okay come on capital now it will be depend upon what son how much money I have, I said I have 10,000, then Swift, I said I have 20,000, then K, then I said I have 50 lakhs, so BMW can also come. Okay, right? Yes, it comes, it comes son, is it okay? Yes, yes, I have reached the showroom, even if it is for someone else, it is important to reach there because they trick you like a boss, is it okay? I already have a BMW, friend, now I do n't want to buy another one, see the one that belongs to Ashish sir is mine, isn't it? This is our academy, this is my academy, bring the keys, give me the keys, is n't it? Ashish sir had said once, Deepesh, we had gone to Karad, then he asked, do you know how to drive, he said, I will sit beside you, so let's go, I said, I will try, he said, let it be [laughs], two and a quarter crore, try, he said, I will drive, send two people ahead, move aside, there is so much traffic, oh, its bonnet is so long that even after I sleep on it, the bonnet will remain intact, its bonnet is around 6 feet. Isn't it? Yes. I mean it is very very good. She doesn't take a turn inside the street.

[00:42:23]Then he will have to take it out from the other side or he does not have the option of taking a Remers U-turn.

[00:42:28]Ok? Look, buying an expensive car is not a big deal. Maintaining it is a big thing. Isn't it? Like Ashish Sir bought the car now, when he parked it, he touched the round bicycle stand and it got a dent. It is ₹ lakh, right, we were going to Vishwasgarh, it got worn out a bit at the bottom, 3 lakh, the PPA coating that is on top of it, the coating of costing of a car, what are these things, so the functions of capital depend on capital supply, tools and machines, capital supply, tools and machines that assist labour in working efficiently and producing maximum output, a labour bag by a better to run machine will be a more efficient in production. Let me discuss it a little bit. Till then put the pencil on charging. She has been discharged. Ok? Now let me give you an example. You will understand it better through this.

[00:43:26]Now there's the Domino's one.

[00:43:29]Domino's also provides home deliveries.

[00:43:31]Equal or not? Now suppose that all his labourers, that is, his employees who go for delivery, delivery boys. Now which machine does he provide them?

[00:43:41]Machine means vehicle provides the vehicle.

[00:43:43]Does it depend on him how long he will take to reach? The answer is yes. Now he says 30 minutes delivery. And he gave us loan. Loona knows Luna. Oh, it is a very old scooter type vehicle, which is 80 cc. Meaning it goes like this on the flyover. Comes back. Then two people step on the floor. Then it goes ahead. That's it, right? Now try to understand the matter. Just for example. Will that guy be able to reach on time with such a car? The answer is no.

[00:44:10]Why? Because you have provided him with such machinery which you will not give him on time. The reason is simple. But if you give him R15, V15 correctly, he will get direct delivery in 15 minutes. What does hot hot mean? You were the one who wanted that this depends. But again, which machinery will you purchase? It will be dependent upon money. Okay, right? So what happened here?

[00:44:35]What quality will the tools and equipment be?

[00:44:37]What? So now the better the tools, the more efficiently the labour will be able to work. Will be able to work well. The answer is yes.

[00:44:45]The answer is yes. He will come son. Ok.

[00:44:50]Come on son. Lets go. Go ahead. Isn't it?

[00:44:53]Yes.

[00:44:55]When will the class end? Until another teacher comes and drags him out. Isn't it?

[00:45:04]Okay Neeraj Bhai, he is your brother's son, who is this Neeraj brother, okay, go home and do it, you are my son, do such things in front of your mom and dad, maybe they will enjoy it, oh no, I am not enjoying it, friend, who will tolerate so much brother, I don't have time, I have it, come on brother, right? Helicopter yes. Meaning the pizza was blown away by giving it like this.

[00:45:40]Sorry from below. Yes. Close your eyes for a minute.

[00:45:44]This is your pizza. Will you do it like this? Ok.

[00:45:47]Capital Improves Productivity of Labor. Improve productivity of labourer. There was a discussion going on that delivery would be done through drone. But then why didn't it happen?

[00:46:01]Don wasn't disappearing. Privacy matters, you are going on someone's roof. You are going to someone's roof. You are crossing four roofs.

[00:46:14]Suppose you are on the fourth floor. If the delivery is on the fourth floor, will it come directly to the fourth floor? So it will come to the first area. First Floor Second Privacy Matters. Hey, it's a simple thing, isn't it brother? Isn't it? Many things matter. Improve productivity of labourer. Capital improves productivity of labor on capital. This intern increases the overall production. I explained it to you simply that the more money you bring, the more production will take place.

[00:46:40]The more efficiency there will be. Look, because of more money you will get good labour also.

[00:46:45]Hey, if you hire a labourer for ₹500, what can you expect from him that he will do a really good job for you? No.

[00:46:51]I brought the painter. He said I will paint the entire room for ₹500. He hit two crows and applied paint. What should I expect from him? How will he paint? So he will do as per the money you give him, right? If I bring a labourer for Rs 2000, he will do the work more professionally.

[00:47:04]Meaning its color will not stick to the ceiling.

[00:47:06]Hey, that tape peep will work perfectly on the polish.

[00:47:08]Such paper will be spread on the tiles below so that the colour does not fall. This brother, he dances with full force and hits his pants. And later I came to know that he also painted the neighbouring classroom.

[00:47:18]Brother, if I were to go into capital supply latent then capital supply and raw material, okay capital supply is raw material which is required on continuous basis for the production, just now I explained in the example of shirt that you invested ₹1 lakh. Will you sit down now? No. Now if you want to do production then you have to buy raw material.

[00:47:52]Labor also has to be paid. But [laughs] you have to have money for that.

[00:47:57]So this says capital supply raw material. If raw material should keep coming on a continuous basis then you should have money on a continuous basis. Then comes fourth generate more employment. Look, there is very simple mathematics here.

[00:48:16]We did not say anything. I did not say anything in my thoughts, if two people sitting next to you say yes I will not say anything, where were you looking, I was looking in this book for you, yes I see this son, I am watching all that, you can see the recording [laughs] okay. Go to Deepesh Sir's lecture and watch the recording of 3:26 minutes 25 minutes. Correct?

[00:48:59]Correct.

[00:49:01]Generate more employment. I will explain it very simply.

[00:49:03]The more money you bring into the business, the more production will take place. It is equal and the more production you want to do, the more labour will be required. So what does it mean if employment is generated automatically? More money, more production, more employment. It's a simple matter. Now suppose I start a hotel and I start a hotel with 100 tables. How much?

[00:49:30]restaurant. 100 table restaurant. So to serve those 100 tables, I will need that much staff. That's how many waiters will be needed. The more chefs will be required to prepare the food. Because if it suddenly becomes 100 Occupy, who will make it bye? What should I say? We did not know that so many people would come.

[00:49:48]I just set up these tables [laughs]. Hey, I won't say it like that. And if I start a restaurant with 10 tables, then I will need fewer employees for it. It is a simple calculation. But money is important for both. You will decide the decision according to the money. Come on, Yogesh Bhai also feels like going, Yogesh Bhai, something like this, sir, I have to note this down as well, sir, a few minutes ago, son, see my time is from 2 to 3:30, I will take it from 2 to 3:30 and make you free, okay son, Priya provides transport facility, capital in the form of roadways, railways, ships, hails, transport of raw material to the site of production and finished goods to the market. You are talking nonsense.

[00:50:40]I bought the TV and brought it and told him to deliver the TV to my house. He said transport charges are extra money. I reached home. Hey, if you give me the money, he will bring it home. He said, otherwise take it with you by keeping it on your head. 80 inch TV went home.

[00:50:54]Two of 40 each.

[00:50:56]Heroine here, heroine here. The TV with the heroine is in my room. It is not that you are worthless. Ok? Provide transport facility. What kind of things are you saying, friend? Sometimes after seeing this it did not seem that it is okay not to say anything.

[00:51:12]Earn brother, earn.

[00:51:14]Sorry.

[00:51:15][laughter] There's nothing he can do now.

[00:51:21]One thing at a time [laughs]. Sadly, the option is gone now.

[00:51:32]Ok? Payment of factors.

[00:51:36]Ok? At the time of my marriage, someone's relatives came and told me this.

[00:51:40]So there was a boy. He said, you should be careful with this. Said Jiu. I said why? He roasts a lot. He said, Oh my God, it 's okay brother. I will survive. I hope he doesn't cry. [laughter] There you go.

[00:51:55]I heard they will roast it big time.

[00:52:01][laughter] And of factors, I know how quiet I am, and I'll say something after the lecture.

[00:52:20]Payment of Factor Capital in the form of money is useful for the payment. All the factors of production will have to be paid in advance. Suppose this batch fee is enough for me for 15 days, my demo would be enough and I have to pay the rent in a month and not in a month, nowadays people take rent in advance. Now I need to have money to pay advance rent.

[00:52:40]What should I say to him? Let the batch run now, then I will give you the money. No, you will have to give it to him.

[00:52:43]All the people who are being paid salary will have to be paid salary. What does it mean? You must have the money to pay the factors rent on time. There must be money to pay wages on time.

[00:52:54]You took a loan from the bank, what will you pay for it?

[00:52:58]interest. But for all this you must have money. Why? Because rent will not wait for your goods to be sold, money will come and then you will pay. No, he wants payment.

[00:53:08]What will you say to the labour? Wait for 5-6 months. The goods will be made, will come to the market, will be sold, then I will give them back. He will say, "Oh no, do n't be foolish. Make the payment, give us our wages and interest. What will you tell the bank people? The goods have just been sold. No. Rent, wages, interest. If you have to pay on time, what should you have, son?

[00:53:23]Money is necessary, capital done, even tell anyone about any difficulty, okay, let's tell you quickly, yes, okay.

[00:54:05]All done, all done, all done, sir, in the topic employment generation, there is the topic modern production which causes employment reduction, okay, where have you read it, son, I have n't read it yet, if you have more, send me the screenshot, son, first I will tell you on WhatsApp, then okay, done, quickly increase the likes, son, I need 100 plus, minimum minimum 100 plus, otherwise, son, I swear on the next attempt, son, in your darshan sir's language, let's hurry up, bye-by, take care, everyone, see you soon, please comment with love, bye, thank you brother. 16