A production function is a mathematical relationship that describes how inputs, such as labor and capital, are transformed into outputs, like goods and services. It helps businesses understand the efficiency of their production processes and how changes in input levels can affect overall output. In economics, production functions are often represented as equations, showing the maximum output achievable with given inputs. Common forms include the Cobb-Douglas production function, which illustrates the contribution of each input to total production. This concept is essential for firms to optimize resource allocation and improve productivity.