Kinds of Production: Production can be of the following kinds:
1. Production by an Addition of Form Utility: When the potter makes an earthenware or when a carpenter makes a table from wood, they create a form of utility in earth or wood.
2. Production by Creating Time Utility: Many things acquire more utility if they are kept aside for some time, for example, vinegar becomes more useful for favouring food and for pickles when kept aside for a long time.
3. Production by Creating Place Utility: When a commodity is taken away from a place where its demand is less to another place where the demand is greater, its utility increases. For example, the wood in the forest areas has less utility there but when it is brought down to someplace in city it acquires more utility. Thus, place utility is created in the wood brought down to a city for making furniture etc.
4. Production by Change of Ownership: When the right of ownership is transferred from one person to another, its utility increases for the second person. For example, a book is not so useful to a bookseller who owns the bookstall but when the ownership to the book is transferred to a student, it acquires more utility to him.
5. Production by Increasing Knowledge about a Commodity: Newspaper, films, radio and television increase our knowledge of the usefulness of a commodity. By advertisement, they create utility in it and thus are performing production.
6. Production by Personal Service: Teachers, lawyers, doctors, musicians performs services to society. They create service utility. Thus, the creation of service utilities is also production.
