Question

What is meant by short run production function?

Answer 1

Answer:

The short-run production function defines the relationship between one variable factor (keeping all other factors fixed) and the output. The law of returns to a factor explains such a production function. ... The law that is used to explain this is called the law of returns to scale.

Answer 2

Answer :

SHORT RUN PRODUCTION FUNCTION

The time period in production is classified into 2 : short run and long run

• Short Run is the period in which the firm cannot vary all inputs. The inputs in short run are classified into 1) variable inputs and 2) fixed inputs.

Inputs that can be changed in short is called variable inputs. All short run inputs can't be changed. Such short run inputs which cannot be changed are called fixed inputs.

Examples for variable inputs includes ; quantity of labour, quality of raw materials, energy etc.

Examples for fixed inputs are ; size of the factory, new machines, new technology etc.

• The situation in which application of one factor is varied, while all other factors are kept constant, the production function which operates in such a situation is called short run production function. It also known as Law of variable proportion or Law of Returns to a factor.