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In economics, a production function relates physical output of a production process to physical inputs or factors of production. Firms use the production function to determine how much output they should produce given the price of a good, and what combination of inputs they should use to produce given the price of capital and labor. The production function also gives information about increasing or decreasing returns to scale and the marginal products of labor and capital.
- Subject:
- Economics
- Social Science
- Material Type:
- Module
- Author:
- SUGAPRIYA S.P
- Date Added:
- 09/20/2020