Production
Topic: Production Function, Returns and Costs · NCERT: Class 11, Ch 1 "Introduction (Statistics for Economics)"; Class 12, Ch 3 "Production and Costs"
Meaning
Production is the process that turns inputs into output. Inputs are things like labour, machines, land and raw materials. Producers, also called firms, carry out production. The output goes either to consumers or to other firms for further production. Services count as production too, not only physical goods. In its basic model, NCERT assumes production happens instantly, with no time gap between using the inputs and getting the output.
Example
A rickshaw puller uses a rickshaw and his own labour to "produce" rides. A car maker uses machinery, labour, steel and rubber to produce cars. Both are production.
Don't confuse with
- Sale: production is about making the output. Selling it to buyers is a separate activity, which can be done by someone else.