The simplest production function is a linear production function with only one input:
Q = a * L
For example, if a worker can make 10 chairs per day, the production function will be:
Q = 10L
In economics, a production function represents the relationship between the output and the combination of factors, or inputs, used to obtain it.
Q=f(L,K)
Where:
- Q is the quantity of products
- L the quantity of labor applied to the production of Q, for example, hours of labor in a month.
- K the hours of capital applied to the production of Q, for example, hours a machine has been working for the production of Q.
There can be other inputs, K and L are just examples.
A production function is a relationship between outputs and a combination of factors used to obtain it.
Given a technology, a production function shows us that the quantity of a product Q that is obtainable by a business, is a function of the quantities of capital (K), labor (L), land (P) and business initiative (H), so that:
Q = f(K,L,P,H)
If we consider only one input:
