Can You Explain Production Function According To Economics?


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Tariq Habib Profile
Tariq Habib answered
We have heard about inputs like land and labour and outputs like wheat and toothpaste. But if you have a fixed amount of inputs, how much output can you get? In practice, the answer depends on the state of technology and engineering knowledge. On the day, given the available technical knowledge, land, machinery, and so on, only a certain quantity of tractors or toothpaste can be obtained from a given amount of output that can be obtained is called the production of function.
The production function specifies the maximum output that can be produced with a given quantity of inputs. It is defined for a given state of engineering and technical knowledge.
For example, we can imagine a book of technical specifications that shows the production function for generating electricity. On one page there are specifications for different size gas turbines, showing their inputs, and their outputs. The next page includes descriptions of several sizes of coal fired generating plants, showing inputs and outputs. Yet other pages describe nuclear power plants, solar power stations, and so forth. Together they constitute the production function for electricity generation. There are literally millions of different production functions, one for each and every product or services.

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