| Production, in economics, all those activities that have to do with the creation of commodities, by imparting to raw materials utility, added value, or the ability to satisfy human wants. The farmer who grows wheat, the miller who grinds the wheat into flour, and the baker who transforms flour into bread are examples of producers who, each in his own way, impart utility to a natural or partially processed material. Production was the major thrust of industry until at least the beginning of the 20th cent., when sales and marketing began to be considered equally important in the transference of commodities from producers to consumers. Today, the prevailing mode of production is called mass production, with cottage industry accounting for only a minor portion of the market in most areas of the world. |
