The meaning of the Production Function

It reveals various types of natural resources, land, labor and capital, which will have to be employed in order to produce one unit or a given quantity of certain commodity or service, in a given period of time. In other words, it indicates varieties of resources and their unique combinations that can be transformed into […]

The production Function

The production function is a purely technical relation, which related factor inputs and outputs. It describes the law of proportion, that is, the transformation of factor inputs into products (outputs) at any particular time period. The production function represents the technology of a firm or an industry, or of the economy as a whole. It […]