Types of production function:
There are two types of production function which are explained as follows:
The short-run production function
The short run is the time period that a firm cannot change all its inputs or factors of production. In the short run, factors like land, factory size, Machinery, etc remains constant but some factors like labor, fuel, raw materials, etc are variable.
Thus, the short run production function is the technical relationship between inputs and outputs, where quantities of some inputs are fixed and quantities of some inputs are variable. The input and output relationship in the short run is studied under, the law of variable proportion’.
It can be expressed as:
Q=f (L, K)
Labour is a variable factor and capital is a fixed factor.
The long-run production function
The long run is the time period in which a firm can change all its inputs or factors of production. It means that in the long run, all factors of production are variable.
Thus, the long run production function is a technical relationship between inputs and outputs. The input and output relationship, in the long run, is studied under the’ law of returns to scale’.
It can be expressed as
Q=f (L, K)
both labor and capital are variable factors.