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| Relationship between the output and the combination of factors used to obtain it, in an economic activity. | Relationship between the output and the combination of factors used to obtain it, in an economic activity. | ||
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| + | ====== Production Function Examples===== | ||
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| + | //During all the examples, Q is the output quantity per time period and L and K are the inputs quantities per time period.// | ||
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| + | See more: [[linear production function]]. | ||
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| + | ==== Linear ==== | ||
| + | ''Q=aL'' | ||
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| + | ===== Diminishing Returns ===== | ||
| + | ''Q=aL<sup>b</sup> 0<b<1'' | ||
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| + | ===== Cobb Douglas ===== | ||
| + | ''Q=aL<sup>b</sup>K<sup>b</sup>'' | ||
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| + | See more about the [[Cobb-Douglas production function]]. | ||
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| + | ===== Perfect Substitutes ===== | ||
| + | ''Q=aL+bK'' | ||
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| + | ===== Fixed Proportions ===== | ||
| + | ''Q=min{aL,bK}'' | ||
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