Answer to Question #196434 in Microeconomics for bun

Question

Explain the concept of a production function. Describe

the production function for hamburgers, computers,

concerts, haircuts, and a college education

Answer 1

The production function illustrates the relationship between the output produced and the inputs used in the production process. It indicates, how the output will change when there is a change in one of the inputs or a combination of inputs or all the inputs. The production function is used by the firms to determine how much output should be produced, given the price of a good, and what combination of inputs should be used. 

For hamburgers, the production function includes the raw materials and land required to produce hamburgers, labor, and the money used to buy the resources(capital). The production function of hamburger illustrates how the output produced is related to these inputs used in the production.

The production function of computers includes land, raw materials and computer parts, labor, and capital investments to start the business. The production function indicates how the output, computer, is related to these inputs.

For concerts, the production function includes inputs such as the place or hall required to conduct the concert, the labor or the music players, and the musical instruments.

The production function for haircut includes labor required to do the haircut service, tools required for the haircut such as scissors and combs.

The production function for college education includes the inputs such as the amount and quality of teaching services, the availability of physical facilities such as classrooms and desks, and the length of time that the students are attending the school.