Business Production Levels


Business Production Levels

Production is the level of goods and services. The purpose of production is to provide People with the goods and services that they need or want to consume.

Production can come in three levels

  1. Subsistence Level
  2. Domestic Level
  3. Surplus Level

Subsistence Production  – The basic needs of a country in which it takes place.  in other words, sufficient enough is produced only to survive but not enough to improve the standard of living.

Advantage & Disadvatage

  • Advantage of Subsistence Production – it is not commonly practiced
  • Disadvantage of Subsistence Production – it is inefficient and dependent upon the climate and weather.

Domestic Production Level – In this level of production everything is produced locally. it does not involve any imports from foreign countries or agencies.
Surplus Production Level – This is the production of goods and services at an excess amount where it is exported or traded.


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