Month: August 2023

Types of Production Function

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Broadly speaking, production function can be classified under two heads: 1.Fixed proportions production function, and 2.Variable proportions production function Under the former the productive factors are combined together in certain fixed proportions. For example, the firm may employ 100 workers to produce an output of1000 units.This proportion is faced and cannot be varied by substitut- … Read more

Nature of Production Function

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Production changes with period of time. In long run, there are various choices available with the producer to make required changes. However, in short run, the choices open to the producer are restricted because some factors are fixed and they can not be changed in the short period. In this situation, production function helps the … Read more