Production Function
The production function relates the output of a firm to the amount of inputs, typically capital and labor.
Aggregate Production Function
An equation determining aggregate output as a function of aggregate inputs such as labor and capital.
Related Terms: ...
Production function
A mathematical way to describe the relationship between the quantity of inputs used by a firm and the quantity of OUTPUT it produces with them.
Production function The relationship between inputs and output. A production function is a technological, not an economic, relationship.
production function a relationship that shows the quantity of output for any given amount of input. (6, 8)
production function the relationship that describes output as a function of labor, capital, and technology. (19) ...
Production function - A functional relation showing the maximum output that can be produced by each and every combination of inputs.
CES production function: CES stands for constant elasticity of substitution. This is a function describing production, usually at a macroeconomic level, with two inputs which are usually capital and labor.
PRODUCTION FUNCTION: A mathematical relation between the production of a good or service and the inputs used.
Production functions for each industry are represented by isoquants drawn relative to these two origins, that for industry Y being rotated 180 degrees from the usual orientation.
Production function
inputs
diminishing returns to inputs
the stages of production
shifts in a production function ...
In 1954 Robinson's article 'The Production Function and the Theory of Capital' started what came to be called the Cambridge controversy. Robinson attacked the idea that capital can be measured and aggregated.
A property of a production function such that changing all inputs by the same proportion changes output less than in proportion. Example: a function homogeneous of degree less than one. Also called simply decreasing returns.
By employing econometrics, economists are able to estimate production functions, cost functions, and other variables such industry supply and demand.
This type of production function is generally known as diminishing marginal productivity: at low levels of production, productivity gains are easy and marginal costs falling, but productivity gains become smaller as production increases; eventually, ...
INTELLECTUAL CAPITAL - Intellectual capital bundles knowledge resources (how the "production functions"...
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Private costs are the costs that the buyer of a good or service pays the seller. This can also be described as the costs internal to the firm's production function.
The theory states that by varying the amounts of labor and capital in the production function, an equilibrium state can be accomplished.
The supply side is described by the aggregate production function, obtained aggregating across firms equation (8); the equilibrium in the labor market, equations (6) and (10); the pricing behavior of the firms, described by equations (11) and (15).
 See also: Inputs, Equilibrium, Perfect competition, Productivity, Substitution
  
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