1 What is production function and its uses? Explain the two types of production functions. ( Production function and its uses, Two types of production functions )
Answer:-
Production function
The entire theory of production centres revolves around the concept of production function. A “production function” expresses the technological or engineering relationship between physical quantity of inputs employed and physical quantity of outputs obtained by a firm. It specifies a flow of output resulting from a flow of inputs during a specified period of time. It may be in the form of a table, a graph or an equation specifying maximum output rate from a given amount of inputs used. As it relates inputs to outputs, it is also called “input-output relation.” The production is purely physical in nature and is determined by the quantum of technology, availability of equipments, labour, raw materials, etc. employed by a firm. (more…)
