PRODUCTION FUNCTION

MEANING OF PRODUCTION FUNCTION:-

The production function specifies the maximum output that can be produced with a given quantity of inputs. The relationship between the amount of input required and the amount of output that can be obtained is called the "production function".

A production function is a mathematical expression to relationship between the quantities of input employed and the quantity of output produce.

In simple case , where there are assumed to be only two inputs labour(L) and capital(k) and one output (X), the  production function  ,X=F(L,K).

TYPES OF PRODUCTION FUNCTION

SHORT TERM PRODUCTION FUNCTION - Term in which one or more factors of production cannot be changed . Over this peroid factors cannot be varied is called  fixed factor.

LONG TERM PRODUCTION FUNCTION - In long term peroid all inputs are variable.