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  • ICAR and TNAU E-Course Summarized

    Summarized Notes
  • Principle of substitution is used in

    Question: Principle of substitution is used in

    Options:

    Product min.
    Selection of enterprise
    Selection of practice
    None of these

    ✅ Explanation: The principle of substitution states that the best combination of resources will be the one that produces a given level of output at the least cost. This principle is used in product minimization, where the goal is to minimize the cost of producing a given product. By substituting one resource for another, a firm can often reduce its costs without sacrificing output.

    🔑Key Points:
    Uniform replacement of one expression/people /substance by another is called substitution.

    • Following are the criterias for substitution:
    -Eager observation is important before substitution so that perfect replacement takes place. 
    -Physical and Mental presence makes the substitution authentic, conclusive, and reliable.
    -Healthy environment bring mutual coordination and cordial relation among team members.
    -Absolute Integrity is the quality of being honest and having strong moral principles. It is a prerequisite for substitution in the organization.

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