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

The production function of a firm depicts the relationship between the inputs used in the production process and the final output produced. Algebraically, a production function is represented as,

Qx = f (L,K)

Where,

L represents units of labour used (input 1)

K represents units of capital used (input 2)

Qx represents the unit of output produced

The following are the characteristics of a production function.

  1. Production function describes the transformation of inputs into final products.
  2. It involves a combination of inputs that are used for the production of final inputs.
  3. Production function is associated with a given level of technology.
  4. The inputs used in the production process (as specified in the production function) are called as factors of production.

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