Question

Explexplain how the consumption laws help the producer to formulate his production process.

Answer 1

Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output). It is the act of creating an output, a good or service which has value and contributes to the utility of individuals. The area of economics that focuses on production is referred to as production theory, which in many respects is similar to the consumption (or consumer) theory in economics

Answer 2

Answer:

⏩Production is always measured by output and consumption is always measured by expense. In short, production is what producers produce, i.e. factories and companies. Whereas, consumption is what consumers consume by incurring an expense. ... This is the difference between production and consumption in simple words.⏪