What Is Production

Name: Brenda Anahí Ramírez Mejía    Date: September 01, 2011
Key Learnings: In others words, production is converting raw materials to finished products. It involves anumber of factors to be able to produce the goods and services that cater to our needs.
What is production?
Production in economics,is all those activities that have to do with the creation ofcommodities, by imparting to raw materials utility, added value, or the ability to satisfy human wants.
Production means the development and creation of goods and services using resources to stimulateexchange. It is the physical output of a manufacturing or service company. Production involves three processes :

1. Raw materials: the raw material is the principal material from which a product ismanufactured or made. This raw material come of the nature.
2. Work in process: includes the set at large of unfinished items for products in a production process.
3. Finished goods: are goodsthat have completed the manufacturing process but have not yet been sold or distributed to the end user.
Means of production refer to the concept which combines the means of labor and the subject oflabor. Means of labor simply means all the things which requires labor to transform it. Subject of labor means the material to work on. Production, therefore, is the combined resources and equipmentneeded to come up with goods or services.
Resources of Production
The resources of production pertains to the things used to create commodities. For example, Agrarian industries require soil andshovel to produce, while industrial companies require factories.
Therefore, it talks about the different factors of production used to be able to come up with the finished goods which include labor,land and capital as the basic. Additionally, technology and entrepreneurship are also playing essential roles in production. These five factors are needed to come up with products or services.
Labor...