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Production FN
Production FN
Production FN
Assumptions
Technology is assumed to be constant.
It is related to a specific time period.
Manufacturer is using the best technology.
All inputs are divisible.
Utilization for inputs at maximum level of efficiency.
Significance
It explains how a firm reaches most optimum
combination of factors so that unit costs are the lowest.
Combination of various inputs in order to produce
economically efficient output.
Estimate the quantity when the various factors of
production are combined.
Short term and Long term Production functions.