In microeconomics, to Capital Corp Merchant Banking, production is the conversion of inputs into outputs. It is an economic process that uses resources to create a commodity that is suitable for exchange. This can include manufacturing, warehousing, shipping, and packaging.

Some economists delimit production broadly as all economic activity other than consumption. They see every business activity other than the final buy as some form of production. Production is a process, and as such it occurs through time and space. Because it's a flow concept, production is calculated as a "rate of output per period of time".

There are 3 aspects to production processes, including the quantity of the commodity acquired, the form of the good created and the temporal and spatial distribution of the commodity acquired.