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| 1. |
What is meant by production function |
| Answer» The\xa0production function\xa0describes a boundary or frontier representing the limit of output obtainable from each feasible combination of inputs. The\xa0production function\xa0also gives information about increasing or decreasing returns to scale and the marginal products of labor and capital.\xa0Production function\xa0is the mathematical representation of relationship between physical inputs and physical outputs of an organization. There are different\xa0types\xa0of\xa0production functions\xa0that can be classified according to the degree of substitution of one input by the other. | |