In microeconomics, Production is simply the conversion of inputs into outputs. It is an economic process that uses resources to create a commodity that is suitable for exchange. This can include manufacturing, storing, shipping, and packaging. Some economists define production broadly as all economic activity other than consumption. They see every commercial activity other than the final purchase as some form of production.
This is an introductory article on production theory.
Contents
Efficiency and cross-efficiency
Factors of production
Total, average, and marginal product
Diminishing returns
Diminishing marginal returns
Many ways of expressing the production relationship
Isoquants
The marginal rate of technical substitution
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Source: Wikipedia