A particular production function is associated with a given level of technology. Explain
The production function of a firm depicts the relationship between the inputs used in the production process and the final output produced. Algebraically, a production function is represented as,
Qx = f (L,K)
Where,
L represents units of labour used (input 1)
K represents units of capital used (input 2)
Q x represents the unit of output produced.
Now, the output per unit of labour by using a given amount of capital depends upon the level of technology used in production which is assumed to be constant or given in the production function. This is because a change in technology will change the output produced per unit of labour. Therefore, if the level of technology will change, the whole production function will change. Hence, a production function is associated with a given level of technology.
The production function of a firm depicts the relationship between the inputs used in the production process and the final output produced. Algebraically, a production function is represented as,
Qx = f (L,K)
Where,
L represents units of labour used (input 1)
K represents units of capital used (input 2)
Q x represents the unit of output produced.
Now, the output per unit of labour by using a given amount of capital depends upon the level of technology used in production which is assumed to be constant or given in the production function. This is because a change in technology will change the output produced per unit of labour. Therefore, if the level of technology will change, the whole production function will change. Hence, a production function is associated with a given level of technology.
