What's the functional relationship between physical inputs and physical outputs of a commodity?
Dear Student
The functional relationship between input & output is called Production Function.
The production function of a firm depicts the relationship between the inputs used in the production process and the final output produced. It specifies how much units of different inputs are needed in order to produce the maximum output.
Algebraically, a production function can be represented as:
Qx = f (L, K) ________________________(1)
where, L represents units of labour used (input one)
K represents units of capital used (input two)
Qx represents units of output x produced (output)
Regards
The functional relationship between input & output is called Production Function.
The production function of a firm depicts the relationship between the inputs used in the production process and the final output produced. It specifies how much units of different inputs are needed in order to produce the maximum output.
Algebraically, a production function can be represented as:
Qx = f (L, K) ________________________(1)
where, L represents units of labour used (input one)
K represents units of capital used (input two)
Qx represents units of output x produced (output)
Regards