PRODUCTION FUNCTION

PRODUCTION FUNCTION:-

 It expresses the relationship between the physical inputs and physical output of a firm for a given state of technology. The production-function is a purely technical relation that connects factor-inputs and outputs. The production-function can be written mathematically as follows:

Qx = f (F1, f2, f3………. Fn).

There is functional relationship between factor-inputs and the amount of goods x.

TYPES OF PRODUCTION FUNCTION:-

The types of production-function it will be useful to understand the meaning of following important terms :
1. SHORT TERM PRODUCTION FUNCTION:-

It shows the relationship between production and factors of production in the short period all factors may not be available, so the factors of production in the short period can be divided into two types they are:
1. FIXED FACTOR.
2. VARIABLE FACTOR.

1. FIXED FACTOR: The factors which are not available in the short period they can be kept as constant. So they are called fixed factors.
EXAMPLE: land, building, machines etc

. 2. VARIABLE FACTORS: The factors which are available to change the output in the short period, they can be changed so they are called variable factors example: capital, labour, raw materials etc

. 3. LONG TERM PRODUCTION FUNCTION:

It explains the relationship between production and factors of production in the long period. It is also called as law of return to scale.
The classification of fixed and variable factors is related to only short period. But in long period all factors are variable factors.