What is production function
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Sia ? 2 years, 10 months ago
The production function describes a boundary or frontier representing the limit of output obtainable from each feasible combination of inputs. The production function also gives information about increasing or decreasing returns to scale and the marginal products of labor and capital. Production function is the mathematical representation of relationship between physical inputs and physical outputs of an organization. There are different types of production functions that can be classified according to the degree of substitution of one input by the other.
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