Production Function
A Production Function is a mathematical representation that describes the relationship between inputs and outputs in the production process. It shows how different quantities of inputs, such as labor and capital, combine to produce a certain level of output, like goods or services. This function helps businesses understand how to optimize their resources for maximum efficiency.
In economics, the production function is often expressed as Q = f(L, K), where Q represents the quantity of output, L is the amount of labor, and K is the amount of capital used. By analyzing this function, firms can make informed decisions about resource allocation and production strategies.