Saturday, September 1, 2018

PRODUCTION FUNCTION

PRODUCTION FUNCTION:-


    It is defined as the when we have given inputs the maximum output will be derived from the given inputs is known as production function.


                           Efficiency depends upon the various quantities used in the production process.output of the interest is gross domestic product GDP according to macro economics.

                           Mathematically we can write this as
                                           Q=f(L,K)

                   Q=outputs

                 L and K are inputs here
                           It is also can be defineded short danong run

EXAMPLE:- In this case if we $1000 is the salary for the stuff working there, so we have t ame of the pizza will cost you 5$ assume to cover the cost of the labor prodution .And also it shows that 50 0 represnts that labor  prodution.If the 500$ rincrease the cost it means 500 pizzas
  

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