Question

Define production function.

Answer 1

A production function indicates the highest amount of a product that can be made in a specific time frame using a set amount of inputs, utilising the best available production method.

Answer 2

A production function shows the maximum quantity of a commodity that can be produced per unit of time with the given amount of inputs when the best production technique available is used. A production function can be expressed in the form of a table, graph or algebraic equation. In the form of an algebraic equation, the production function for a good may be expressed as:

Q_X = f(F₁, F₂...F_n) Where O_X is the quantity of output of the commodity X: and  F₁, F₂ ... F_n are the quantities of different inputs used to produce the commodity X.