Production function
Production function is the process of a firm turning economic inputs like labor, machinery, and raw materials into outputs like goods and services used by consumers.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Production function. The process of a firm turning economic inputs like labor, machinery, and raw materials into outputs like goods and services used by consumers.
According to Macroeconomics by Mankiw (7th edition),
- Production function. The mathematical relationship showing how the quantities of the factors of production determine the quantity of goods and services produced; for example, Y � F(K,L).