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feature of production function |
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Answer» Production function presumes the following main features: 1. It indicates a functional relationship between physical inputs and physical output of a firm. 2. The production function is always in relation to a period of time. 3. The production function can specify either the maximum output that can be produced from a given set of inputs or the minimum quantity of inputs required to produce a given level of output. 4. Production function is purely a technical relationship. It has no reference to money price. 5. Output in the production function is the result of joint use of factors of production. 6. The production function includes all the technically efficient methods of production. Thus production function describes the law of production, i.e the transformation of factor inputs into outputs (products) at any particular period of time. Please hit the like button if this helped you |
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