Question

Production is just creation of goods of higher value.Explain​

Answer 1

Explanation:

a. Production of goods and services implies transforming raw material into finished products adding higher value to it.

b. Processing of raw material to the finished products enhances the value of products .Additionally, individuals involved in production also bring value add to services that they perform, by using their skills and expertise.

c. Production process involves combing all four factors of production namely, land, labour , capial, machinery to produce goods .

d. The output produced as a result of the processes has more value as compared with the raw material used as input.