Production Function
Definition
A production function is a mathematical representation that shows the relationship between inputs (such as labor and capital) and outputs (such as goods or services) produced by a firm. It demonstrates how much output can be produced with different combinations of inputs.
Related terms
Total Product: Total product refers to the total amount of output produced by a firm using all available inputs in a given period.
Marginal Product: Marginal product represents the additional output that is generated when one more unit of input is added while keeping other inputs constant.
Average Product: Average product is calculated by dividing total product by the quantity of input used. It measures the average amount of output per unit of input.
"Production Function" appears in:
Additional resources (3)
AP Microeconomics - 2024 AP Microeconomics Exam Guide
AP Microeconomics - Unit 3 Overview: Production, Cost, and the Perfect Competition Model
AP Microeconomics - Introduction to Unit 3
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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.