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Economics 101: Production Function | SterlingTerrell.net

Economics 101: Production Function

 

In economics, what is a production function?

A Production Function is a graphical representation of inputs and outputs for a particular production process.

For instance, a car factory may want to know the relationship between the number of employees they have and the number of cars they produce.

This relationship can show the optimal number of employees to hire and cars to produce.