Production Concept

Production (word etymologically derived from the Latin producere, which means “make appear” is a kind of economic phenomenon that consists in the performance of Men about Nature with the aim to obtain, through a certain productive process, goods (including products and services) necessary for their needs’ satisfaction. Said in another way, production includes initial goods and all operations and production factors which will all value. Taking this definition into account, form production operations several types of activities, among which industrial transformation, storage, transport, communication and marketing, distribution and selling and the services, since all of these activities add value to the initial good.   

In theoretical terms an in the scope of economic science, the production of any good (or better, the quantity produced) can be defined in function of the production factors used according to a mathematical function designated by production function.

 

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.