MGT405 Lecture Notes - Lecture 13: Dependent And Independent Variables, Marginal Revenue Productivity Theory Of Wages, Production Function
Document Summary
After having studied this lesson, you should be able: to understand the meaning of production, to know the factors and characteristics of production, to familiarize the basic concepts in production theory, to understand the production function. It directly or indirectly satisfies the wants and needs of the people. Satisfaction of human wants is the objective of production. In this lesson a general discussion of the concept of production and its functions are carried out. Production is the conversion of input into output. The factors of production and all other things which the producer buys to carry out production are called input. The goods and services produced are known as output. Thus production is the activity that creates or adds utility and value. In the words of fraser, "if consuming means extracting utility from matter, producing means creating utility into matter". Production is a process by which goods and services are created"
