Improvement in the level of technology will increase the output level, even if the amount of input remains the same. A change in the state of technology will also change the production function. The state of technology affects production.It also denotes the flow of input that will produce the flow of output over a specific period of time.This shows the technical relationship between inputs and outputs which are in physical form.A production function is a representation of the functional relationship between the amount of input employed and the amount of output produced.The characteristics of Production Function are as follows: – What are the characteristics of Production Function? The quantity of a single input may be possible in a short period of time. In the production function, the variation in total output is due to the variation in input quantity. Production can only be possible in the long run.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |