Question

Discuss about classical Economics Revolution and Production function under two factors of production

Answer 1

Explanation:

CLASSICAL ECONOMICS:

Classical economic theory was developed shortly after the birth of western capitalism and the Industrial Revolution. Classical economists provided the best early attempts at explaining capitalism's inner workings. The earliest classical economists developed theories of value, price, supply, demand, and distribution.

PRODUCTION FUNCTION

In the production function itself, the relationship of output to inputs is non-monetary; that is, a production function relates physical inputs to physical outputs, and prices and costs are not reflected in the function. ... Classically, the primary factors of production were land, labour and capital.