 Under the production analysis, we are going to study the concept of net output. When we say the net output, it means one topic of the total output that we have covered that has given us the total output, but the net output is some term that is different from that total output. So, the net output, it means all the resources that have been utilized for the production of that output. Now those resources have to be valued and their value has to be reduced from that total output. So, net output is nothing else, but just the revenue or we can say the price into total physical product, mean the quantity minus the total cost. So, total output minus total cost is equal to the total revenue and that total revenue we are going to name here as the net output. Basically, that net output will be the basic thing for an entrepreneur to decide that either he is earning well, that to sustain his business in the future or not and either he has to decide certain other production process or to have any other least cost method because he has to reduce certain cost. So, when we are having certain objective function and at the same time we are having certain technical constraints, so in the decision of that net output we are having our objective function mean total output and at the same time we are having our technical constraints mean the utilization of all the inputs and their prices. So, with the combination of our objective and technique function and the technical constraints we are going to develop net output and economists mostly utilize this net output in the other form that it is the basically the profit of an entrepreneur in the production process. So, now coming to the concept of net output in detail we can say that the total revenue if it is in the form of the accounting or the commerce when we are going to utilize we will say that how much units of the production has been produced and then sold in the market because here might be the firm has produced not thousand rather two thousand but one thousand units that are still kept in the inventory because their price cannot be validated here until and unless it is put in the market. So, we are going to say that if a firm has produced two or three thousand units of something, but in the market because it has only sold one thousand units, the remaining ones will be in the inventory and the cost will be the same, but because the market price has not been fixed yet, so that is why we cannot count it now. So, in accounting we will include only those that have been put in the market and in the market the firm has given all the units, what is the price of those units? So, these two aspects will be utilized. So, amount earned through the sale of those units, what will be it? It will be the price in the market multiplied by all the units sold in the markets. So, this will be the total amount of the revenue. Now, to produce these units, if we count how much money was invested in the form of energy, on the form of capital or on the form of the labour, now the first example we took that it may have produced two thousand units, so instead of the cost of those two thousand units, we will assess here only one thousand units because the cost has been incurred. Now, it has been finalized. So, in that way we will look at the aspect that how much money was invested in the units in the market. So, out of that revenue now we will decide the cost of these sold items and then we will subtract the cost of these items from the total revenue and from the sale of these items. So, to determine the total revenue and total cost, we will generally focus on the explicit, I mean, Vazia revenue and explicit cost. So, for the net output and for the total revenue, we will include the explicit revenue and the explicit cost and on the base we will quantify that either the firm is earning something positive or not or ye ham us firm ki income statement me usko enter karenge.