Fisheries Economics

3.1.1. Production

Production is the process of transformation of one or more inputs into one or more outputs.

Production is defined as the creation of utilities and not matter. In other words, it is the creation of want – satisfying goods and services. Utilities are created in four forms : (1) form utility, (ii) place utility  (iii) time utility and (iv) possession utility. A good may be transformed by changing its physical form (form utility), transporting it to another place (place utility) or being kept in store unit required (time utility). Production essentially means transformation of one or more inputs into one or more outputs or one set of goods into another set of goods. Gifts of nature are utilised by man in satisfying his wants and production is not complete unless the product reaches the consumer).