What is production?
Production is any activity which results into the creation of goods and services in order
to satisfy human wants.
In economics, sense, production is for exchange while in the general meaning
production may mean the creation of goods and services for personal consumption.
Production is not complete without consumption. Therefore production involves activities which facilitate transfer of goods and services from the areas where they are
produced to where they are demanded for consumption.
Examples of such activities
which facilitate transfer of goods and services are:-
- Transportation
- Communication
- Ware-housing
- Banking
- Advertising
- Insurance
- Marketing etc