Question

What is the production function? Explain it in some detail

Answer 1

The relationship between input and output is termed as production function.

Micro Economics assumes that there are four factors of production i.e Land, Labor, Capital and Entrepreneur. With the help of these factors of production (input) the output is produced.The producer takes certain combination of factors of production and decides to produce output,which can be called as production function.

Production function signifies how much level of output a producer can expect if he employs. certain level of input