One of the major determinants of the volume of production is

Answer Details

The major determinant of the volume of production is the market size. Market size refers to the number of potential customers for a product or service. When there is a large market size, there is a greater demand for the product, which in turn drives production volume. This is because businesses can sell more units of their product and generate more revenue, which allows them to increase their production capacity to meet the demand. On the other hand, if the market size is small, the demand for the product will be lower, resulting in a lower production volume. In such a scenario, businesses may struggle to generate enough revenue to justify increasing their production capacity. While other factors such as the availability of banks, sex distribution, and government policy can have an impact on production volume, they are not as significant as the market size. Ultimately, a business needs a sufficient market size to sell its products or services in order to justify increasing its production volume.