Month: May 2021

Meaning and Types of the Production Function

Meaning of the Production Function The technical process that links inputs to the output of a good is known as the production function of that good. It is defined as the technological relationship between inputs and output giving the maximum output that can be produced from various input combinations. The production function analyses the relationship …

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Production, Total Product(TP), Average Product(AP), and Marginal Product(MP)

Meaning of Production In economics, production means the creation of utility for sale. The act of creating utility is done by transferring a set of inputs into some output of good or service. The output has a greater utility than the inputs together. Thus, output or new product created is sold in the market. If …

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