Glossary · Micro · Production and costs

Production function

The relationship between the inputs a firm uses and the most output it can get from them. Fix capital and vary labor and it shows how output rises, then flattens, as workers are added.

Also called: total product

Taught in: Inputs and Outputs

Related terms

Marginal product of labor (MPL)Cobb-Douglas production functionShort run vs long run

More from production and costs

Average fixed cost (AFC)Average product of labor (APL)Average total cost (ATC)Average variable cost (AVC)Economies and diseconomies of scaleFixed cost (FC)Isoquant

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