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We are going to discuss Meaning and Factors of Production from Theory of Production in accordance with FEM ( Fundamentals of Economics and Management ) Paper 1, CMA Foundation. Theory of production, in economics, an attempt to clarify the principles by which a firm decides what proportion of every commodity that it sells (its “outputs” or “products”) it'll produce, and the way much of every quite labour, staple, fixed capital good, etc, that it employs (its “inputs” or “factors of production”) it'll use. Theory of production , in financial aspects, a push to clarify the standards by which a business firm chooses the amount of every item that it sells it will deliver, and the amount of every sort of work, crude material, fixed capital great, and so forth, that it utilizes (its “inputs” or “factors of production”) it will utilize.  A production function relates to the physical output of a production process to physical inputs or factors of production. it's a functio...