Question

In: Economics

What is a production function? Write an equation for a typical production function, and explain what...

What is a production function? Write an equation for a typical production function, and explain what each of the six terms represent?

Solutions

Expert Solution

A production function represents the relationship between inputs & outputs of goods & services. It states how much maximum output can be produced with the help of available inputs & technology during a period of time. A production function can be short-run or long-run. In the short-run, production is based on factors among which some factors are fixed while in the long-run, all the factors of production are variable. In the form of an equation, a production function can be written as:

Q=A f(L,K,H,N)

where,

Q=quantity of output

L=labor supply

K=physical capital

H=human capital

N=natural resources

A=available production technology

This production function represents how much output can be produced with the help of available inputs namely, labor, physical capital, human capital, natural resources using the available production technology. So, production output is the function of given inputs & available production technology & this relationship is represented by the production function.


Related Solutions

What is production function? What is Cobb-Douglass production function? What is isoquant? What is a typical...
What is production function? What is Cobb-Douglass production function? What is isoquant? What is a typical shape of the rate of output as a function of labor or capital? What is the difference between marginal production and average production functions? Define the law of diminishing marginal return?
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
Write out the production function. What do each of the variables in the function represent? (i.e....
Write out the production function. What do each of the variables in the function represent? (i.e. factors that determine productive capability) Which of these factors are key to long term sustainable growth?
Explain a typical dynamic lag equation, issues with it and possible solutions.
Explain a typical dynamic lag equation, issues with it and possible solutions.
what is the Drake equation? (write the equation and explain its factors) Research the current values...
what is the Drake equation? (write the equation and explain its factors) Research the current values of the Drake equation factors and then calculate the number of communicative civilizations based on your research. Do you believe these numbers? If not, why not? Give evidence and cite data sources.
a) Explain the production of x-rays b) What is the typical energy range for Compton scattering...
a) Explain the production of x-rays b) What is the typical energy range for Compton scattering and why? c) Why does pair production require a minimal energy and what is it?
If the consumption function is given by the equation C = 500 +0.5Y, the production...
If the consumption function is given by the equation C = 500 + 0.5Y, the production function is Y = 50K0.5L0.5, where K = 100 and L = 100, then C equals:3,000.5,000.2,500.1,000.
For the following exercises, use the graphs to write an equation for the function.
For the following exercises, use the graphs to write an equation for the function.
What is production function
What is production function
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT