Define production function. Distinguish between short run and lon… - Vidyadip

Question

Define production function. Distinguish between short run and long run production functions.

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Answer

Production function: Refers to mathematical relation between physical input and physical output.Short run: Production function refers to a situation when output is increased: by changing only one input while keeping other inputs unchanged.
Long run: Production function refers to a situation when output is increased by increasing all the inputs simultaneously and in the same proportion.

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