Moving away from complex definitions, we can say that the production function is a catalogue of output possibilities. Note that a production function is defined for a given state of technology.Īccording to Richard H.Lefthich: The term production function is applicable to the physical relationship between a firm’s input of resources and its output of goods or services per unit of time leaving prices aside. Further, it can also help us in determining the inputs we require to achieve a minimum level of production. To put it differently, the production function can provide us with the maximum goods and services that we can produce using a given amount of inputs. The inputs are the various factors of production- land, labour, capital, and enterprise whereas the outputs are the goods and services.
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