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Define the production terminology in short.
Production Technology:
Production is the procedure of transforming inputs to outputs. Characteristically, inputs consist of labor, raw materials, capital equipment and intermediate goods purchased by other firms. An output comprises finished products or service, or intermediate goods to be sold to another firm. Frequently alternative methods are obtainable for producing similar output, by using various combinations of inputs. A firm produces outputs through various combinations of inputs. So as to study firm choices we require a convenient process to summarize the production possibilities of the firm, which is, the combinations of inputs and outputs are technologically feasible.
3, chapter 12
baumol''s theory
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