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--- en:production-function-example [2018/07/23 07:45]
federico
+++ en:production-function-example [2018/07/23 07:49]
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 Q = F (a * K<sup>α</sup> + (1 - a) L <sup>α</sup>)<sup>1/a</sup>
+===== Example 5: Fixed Proportions Production Function =====
+In a fixed proportions production process, the inputs are needed in a fixed relationship. For example, if we need one person per computer. If we add an additional person, and we do not add an additional computer, output will not increase. The same will happen if we add an additional computer, but we do not add an additional person. In this example, the proportions are 1:1, but there can be other proportions that will also match the fixed proportions production function, for example, if we need 1 person to control 10 robots.
+Example of a fixed proportions production function:
+Q = min {L,K}