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en:production-function

# Production Function

Relationship between the output and the combination of factors used to obtain it, in an economic activity.

# Production Function Examples

During all the examples, Q is the output quantity per time period and L and K are the inputs quantities per time period.

See more: Linear Production Function.

### Linear

Q=aL

## Diminishing Returns

Q=aLb 0<b<1

## Cobb Douglas

Q=aLbKb

See more about the Cobb-Douglas Production Function.

## Perfect Substitutes

Q=aL+bK

## Fixed Proportions

Q=min{aL,bK}

## Discussion

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en/production-function.txt · Last modified: 2015/03/26 11:48 (external edit)