M. COM. SEM-I-MANAGERIAL ECONOMICS-PRODUCTION FUNCTION
MANAGERIAL ECONOMICS- PRODUCTION FUNCTION M. COM. SEMESTER-I Production function is a concept in managerial economics that describes the relationship between the inputs used in the production process and the resulting level of output. In other words, it is a mathematical equation that shows how much output can be produced from a given set of inputs. The production function can be used to analyze the efficiency of the production process and to determine the optimal level of production given the resources available. The general form of a production function is as follows: Q = f(K, L) where Q is the level of output, K is the quantity of capital input, and L is the quantity of labor input. The production function shows how the level of output (Q) is affected by the amount of capital and labor used in the production process. Example: A company produces widgets using two inputs: labor and capital. The company's production function is given by: Q = 5K^(0.5) L^(0.5) where Q i...