Question

1. How does each variable in the production function reflect economic prosperity for a nation?

Answer 1

The production function is the relationship between physical input and output means the input of factors of production to the output of goods, Inputs are capital, labour, energy, raw material,

variables of production function reflect the prosperity for the nation by;-

, if the labours of a business working in a good condition and are getting a good amount of wages then they show a healthy work for the economy and also perform well and this shows the prosperity of nation for the variable which is labour.

, a business puts a healthy amount of capital to invest in the business which leads to grow the business in a fast way and that business contributes in the nation economy which lifts the economy,

. if a nation has its own raw material then they should export the material and should also use it for themselves for there production. this will increase the exports of the business and also helps in the growth of the nation.

PLEASE DO LIKE