Question

What is production function ?

Hint:

Think of the production function as a recipe. It tells you the maximum amount of cake (output) you can bake with a specific combination of ingredients (inputs).

Answer 1

A production function is a technical relationship that shows the maximum quantity of output that can be produced from a given set of inputs (like labor, capital, and land). It is represented by the equation \( Q = f(L, K) \), where Q is the output, L is labor, and K is capital.