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Consider the following statements.
1. The upstream stage of the production process involves searching for and extracting raw materials.
2. It does not do anything with the material itself, such as processing the materials.
3. In upstream, firms simply find and extract the raw material.
Which of these statements is/are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements. 1. The upstream stage of the produ...
The correct answer is option 'D': All of them.

Explanation:
1. The upstream stage of the production process involves searching for and extracting raw materials.
- This statement is correct. The upstream stage of the production process refers to the initial phase where raw materials are sourced and extracted. This may involve activities such as prospecting, mining, drilling, or harvesting, depending on the nature of the raw material.

2. It does not do anything with the material itself, such as processing the materials.
- This statement is correct. In the upstream stage, the focus is primarily on the extraction of raw materials and not on processing them. Processing usually takes place in the downstream stages of the production process.

3. In upstream, firms simply find and extract the raw material.
- This statement is correct. In the upstream stage, the main objective of firms is to locate and extract the raw material required for production. This may involve activities such as exploration, acquisition of mining rights, or negotiating contracts with suppliers.

Summary:
All three statements are correct. The upstream stage of the production process involves searching for and extracting raw materials. It does not involve processing the materials itself, and firms in the upstream stage primarily focus on finding and extracting raw materials.
Community Answer
Consider the following statements. 1. The upstream stage of the produ...
  • The upstream stage of the production process involves searching for and extracting raw materials—it does not do anything with the material itself, such as processing the materials.
  • In upstream, firms simply find and extract the raw material.
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Consider the following statements. 1. The upstream stage of the production process involves searching for and extracting raw materials.2. It does not do anything with the material itself, such as processing the materials.3. In upstream, firms simply find and extract the raw material.Which of these statements is/are correct?a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'D'. Can you explain this answer?
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