Production within an economy can be divided into three main stages. They are primary, secondary and tertiary. The theory of production depicts the relation between the physical outputs of production process and physical inputs. Physical inputs mean factors of production. The practical application of production functions is obtained by valuing the physical inputs and inputs by their prices. The theory of production deals with relationship between the factors of production and the output of goods and services. In economics, production theory explains the principles in which the business has to take decisions on how much of each commodity it sells and how much it produces and also how much of raw materials is used. The presentation gives in-depth knowledge on the topic.

Jincy Anna Joy

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