Question

What do you mean by production function ? Discuss its main characteristics​

Answer 1

Answer:

Definition: The Production Function shows the relationship between the quantity of output and the different quantities of inputs used in the production process. In other words, it means, the total output produced from the chosen quantity of various inputs

Generally, production is the transformation of raw material into the finished goods. These raw materials are classified as land, labor, capital or natural resources. These may be fixed or variable depending upon the nature of the business.

This function establishes the physical relationship between these inputs and the output. The efficiency of this relationship depends on the different quantities used in the production process, the quantities of output and the productivity at each point. It can be shown algebraically:

O = f (I1, I2, I3, I4…….. Zn)

Where, O = quantity of output

I1, I2, I3 = Quantity of different inputs

It can be classified on the basis of the substitutability of the inputs by other inputs:

production functions

Fixed Proportion Production Function

Variable Proportion Production Function

Linear Homogeneous Production Function

Cobb. Douglas Production Function

Constant Elasticity of Substitution

Thus, it is a comprehensive function that involves different activities ranging from the production of output from the given inputs and its distribution by the marketing division of the organization.

Answer 2

Explanation:

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