What are the Characteristics and Types of Production Function in Economics?
Here Information help us to know about the Characteristics and types of Production function in Economics in detailed.
What are the Characteristics and Types of Production Function?
Firstly, we discuss about the Characteristics of Production Function.
Characteristics of Production Function:
The main features of production function may be stated below as-
- It represents a technical relationship between physical input and physical output. It does not take into consideration money cost or price of the output sold.
- The state of technical knowledge is assumed to be given and constant. It is possible that the same amount of inputs might produce higher level of output if a better technology is applied in production. Means that the same combination of two or more factors can produce more output with improved technology. It is clear that the production function changes with the change in technology, state of technical knowledge, process of production or organisation of the firm.
- It states the maximum quantity of output that can be produced from given quantities of inputs. Alternatively, it shows the minimum quantities of inputs that are required to obtain a given quantity of output.
- Production function, like the demand function is considered always with reference to a particular period of time. It expresses a flow of output resulting from a flow of inputs during a definite period of time.
- It can be represented in various forms likes by tables; by equations; by total;, average and marginal product curves; by iso-quants.
Types of Production Function-
There are two types of production functions. In other words, there are two types of input-output relations. These are as follows:
- Short run production function wherein quantity of only one input is variable. This kind of production function is known as variable proportions production function also, because when the quantity of only one input is changed keeping all other inputs constant, the proportions of inputs change. The law of variable proportions is related to the short run production function.
- Long run production function wherein quantities of all inputs are changed at the sametime. This kind of production function is known as fixed proportions production function, because when all inputs are increased, proportions in which they are used do not change. The laws of returns to scale are related to the long run production function.
What are the Characteristics of Production Function
What are the Types of Production function
Short run production function
Long run production function
Economics- Theory of Production- Characteristics and Types of Production Function.
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