What is a production function? Discuss its significance in managerial economics?
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One important purpose of theproduction function is to address allocative efficiency in the use of factor inputs in production and the resulting distribution of income to those factors, while abstracting away from the technological problems of achieving technical efficiency, as an engineer or professional manager might ...
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Production Managerial Economics. ... PRODUCTION FUNCTION States the relationship between inputs and outputs A production function is the functional relationship between inputs and output. It shows the maximum output which can be obtained for a given combination of inputs.Production Managerial Economics. ... PRODUCTION FUNCTION States the relationship between inputs and outputs A production function is the functional relationship between inputs and output. It shows the maximum output which can be obtained for a given combination of inputs.
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