Tutorspoint.com is an excellent site, which caters to all queries of economics assignment help related to topics of Production Function Homework Help.
Since all the economics assignment writing help is offered at reasonable rates, Tutorspoint assignment expert service is highly recommended by students worldwide from many universities of U.S. America, Australia, Canada, Germany, Ireland.
How Do You Define Production Function
What is production?
Production is a process where inputs are transformed into output production is an activity where resources are altered or changed and there is an increase in the ability of these resources to satisfy wants. Input is any goods or service which helps in the production of an output. To get Production Function Homework Help contact tutorspoint.com
What is the Production Function
The production function is a technical relationship between a set of inputs or resources and a set of outputs or goods.
QX = f( inputs [land, labor, capital], technology, . . )
The production function is a technical relationship between a set of inputs or resources and a set of outputs or goods.
QX = f(L, K)
QX = quantity of output
L = labor input
K = Capital input
Example For Production Function:
Inputs and outputs in healthcare:
Inputs for the hospital: The infrastructure, beds, types of equipment, vehicles, drugs, manpower, etc
Outputs: In-patient days, number of outpatients visits, No. of surgeries conducted, completed consultant episodes, etc
Inputs for public healthcare delivery: communication materials, birth control devices, voluntary support, vehicles, etc
Outputs: number of birth control devices distributed, number of awareness campaigns, the number of targeted patients treated, etc.
The final output of any healthcare system is an improvement in health that the system was designed to produce. The advantage of using the intermediate indicators as output is that they are measurable and hence can be easily monitored.
Factors: There are two types which are the fixed and the variable factors.
A) The fixed factor do not change with the change in output. Examples are Factory building, rent, plant or machinery, etc.
B) Variable factor changes with the change in output. Examples are Raw materials, daily laborers, electricity, etc.
Types of Production Function:
Based on the time period Production Function is divided into
A) Short-run Production Function or Returns to factor: Short-run Production Function is a production function in which output is changed by changing only the variable factor
B) Long run Production Function or Returns to scale: Long run production function is a production function in which output is changed by changing both the fixed factor and the variable factor.
Example: Suppose the demand for Tata Steel increases
To respond to this increase in demand the industry will increase production by increasing the raw materials, hiring more workers, increasing workers’ overtime, increasing the capacity utilization of the plant, etc. These are variable factors.
In the long run, to meet the excess demand, the producer has to change the fixed factors such as building, machinery, etc.