Meaning of over production and under production ?

Overproduction refers to the production of goods or services in excess of what is needed or demanded by the market. This can lead to a surplus of inventory, reduced prices, and ultimately financial losses for the producer.

Underproduction, on the other hand, refers to the production of goods or services in insufficient quantities to meet market demand. This can result in shortages, missed sales opportunities, and potential loss of market share for the producer.