ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A production function shows the relationship between inputs of capital and labor and other factors and the outputs of goods and services. The simplest possible production function is a linear production function with labor alone as an input.

Detailed explanation-2: -In the basic production function, inputs are typically capital and labor and output is whatever good the firm produces. A production function relates the input of factors of production to the output of goods.

Detailed explanation-3: -production function, in economics, equation that expresses the relationship between the quantities of productive factors (such as labour and capital) used and the amount of product obtained.

Detailed explanation-4: -Input is the process of taking something in. For example, when a company takes in a raw material to make a finished good, they are receiving an input. Output is the exact opposite, in that it’s the process of sending something out.