**Production Function**may be defined as the functional relationship between input (factors of production) and physical output. It shows the maximum amount of output that can be produced from a given set of inputs in the existing state of technology.

Input → Firm → Output

Production function can be expressed as

q = f(x

_{1}, x

_{2},..., x

_{n})

where q = quantity of output produced

(x

_{1}, x

_{2},..., x

_{n}) = factor of production

Properties of Production function/Assumptions:

1. Production function is a single valued and continuous function with continuous first and second order partial derivative.

2. The production function is defined only for non-negative value of input and outputs.

3. The production function is normally assumed to be increasing with its domain.

4. It is strictly quasi-concave function when output is maximized or cost minimized and strictly concave function when profit is maximized.

to be continued......

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