Question

what is production function??what are its characteristics?????

Answer 1

In economics, a production function relates physical output of a production process to physical inputs or factors of producton. The production function is one of the key concepts of mainstreem neoclassical theories, used to define marginal product and to distinguish allocative efficiency , the defining focus of economics.The primary purpose of the production 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 understand it. Production function denotes an efficient combination of inputs and outputs.