Question

Define meaning and aim of production​

Answer 1

In Economics,production basically refers to the technical transformation or conversion of various factor/inputs of production into final output which can fulfill the needs,demands or wants of people or consumers or buyers.

Explanation:

• From a business or commercial standpoint,production encompasses any economic activity practice which involves some kind of financial or economic motivation or incentive,mainly revenue or monetary profit.Hence,any commercial production of goods and services involves exchange of transaction of those goods and services by the seller or producer in order to obtain revenue and increase their business profit.
• Now,from the standpoint of economic welfare,production of goods and services are meant to fulfill the required demands,wants and needs of general people or consumers or buyers.
• Without consumer or buyer demand for goods and services,production does not have any real value or purpose from an economic welfare perspective.
• An increase in production of goods and services often practically reflect greater mobilization or productive resources or factors/inputs of production in the economy which accompanied by a stable or increasing consumer demand can evidently lead to higher national income and GDP level of any country.Hence,commercial production in the economy also contributes to short term and/or long term economic growth of any particular nation or country.