GENERAL KNOWLEDGE

Detailed explanation-1: -1:"Production is the creation of utility."-this is a true statement. Utility refers to the want-satisfying power of a commodity or a service. 2:Production refers to a process of manufacturing commodities or rendering services which in turn provides satisfaction to human wants.

Detailed explanation-2: -Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output). It is the act of creating an output, a good or service which has value and contributes to the utility of individuals.

Detailed explanation-3: -Production utility is the utility that is created when the inputs are converted into outputs. The factors of production are used to produce those goods and service that are demanded by people in the economy, this is when the production utility is created.

Detailed explanation-4: -Form utility is created by the design of the product or service itself. The more precisely a good or service is targeted towards customer needs and desires, the higher its perceived added value (i.e., form utility) will be.