Production Function

Production Function

Production function can be defined as the relationship between production level and factors effecting production.

Functional presentation of production function,

Q = f (x, x2, x3 -----------------)
Here
Q = Production
f = function

X1, X2, X3, ....... Are the factors of production such as land, labor, capital, organization etc. Factors of production are two types:

i) Variable factor Labour, material etc.

ii) Constant factor Land, plant and equipment.