In economics, a production function gives the technological relation between quantities of physical inputs and quantities of output of goods.

What is meant by production function?

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. ... It can also be used to determine the cheapest combination of productive factors that can be used to produce a given output.

What is production function in simple words?

In simple words, production function refers to the functional relationship between the quantity of a good produced (output) and factors of production (inputs). ... In other words, we can say that production function is an indicator of the physical relationship between the inputs and output of a firm.