Discuss on Production of Goods

This article focus to Discuss on Production of Goods. A firm is defined as any organization of individuals that purchases factors of production in order to produce goods and services that are sold to consumers, governments, or other firms. The theory of the firm assumes that the firm’s primary objective is to maximize profits. In maximizing profits, firms are subject to two constraints: the consumers’ demand for their product and the costs of production. Here also briefly discuss on Variable and fixed factors of production, Total and marginal product and Law of diminishing returns.