Producer
Topic: Production Function, Returns and Costs · NCERT: Class 11, Ch 1 "Introduction (Statistics for Economics)"
Meaning
A producer is someone who makes goods or provides services. Examples are a farmer, a manufacturing company, a doctor, a porter or a transporter. In economics, producers are also called firms. They combine inputs to make output and sell it either to consumers or to other firms.
Example
A farmer in Punjab who grows wheat is a producer of goods. A doctor who treats patients in a village clinic is a producer of services.
Don't confuse with
- Seller: a seller sells goods to make a profit but may not make them, like a shopkeeper selling biscuits made in a factory. One person can be both a producer and a seller, but the two roles are different.
Related concepts
- Production
- Seller
- Cost of production
- Revenue
- Production function
- Efficiency in production
- Technology