Production (economics)


Written By: Ehsan Jahandarpour

Production is the process of combining various material inputs and immaterial inputs (plans, knowledge) in order to make something for consumption (output). It is the act of creating an output, a good or service which has value and contributes to the utility of individuals. The area of economics that focuses on production is referred to as production theory, which is intertwined with the consumption (or consumer) theory of economics.
* market production
* public production
* household production