ABSTRACT
Production is the process of ‘changing the form or arrangement of matter to adapt it better for the satisfaction of wants’ (Marshall 1920). Marshall goes on to suggest that it is when we ‘adjust matter to make it more useful’. By putting together materials, equipment and skills we provide a service or produce a useful product. Many different combinations are usually possible, and the choice of how to produce services should depend on many factors. The explosive growth of the Internet has led to many changes in the ways services are delivered – music no longer needs to be
Health services are very diverse. Some parts use technically skilled staff, sophisticated equipment and expensive consumables, while others require caring and human skills. Some are highly automated, and others are more like craft industries. Some require teamwork, while in others professionals work alone. Health services are provided in many different settings. This chapter considers the general approach of economics to production, and explores how this can help in understanding production of health and health care.
