In economics, a production function represents the relationship between the output and the combination of factors, or inputs, used to obtain it.
Q=f(L,K)
Where:
- Q is the quantity of products
- L the quantity of labor applied to the production of Q, for example, hours of labor in a month.
- K the hours of capital applied to the production of Q, for example, hours a machine has been working for the production of Q.
There can be other inputs, K and L are just examples.
