What is Production Function ?
Factors of production means inputs and finished goods means output. Input decides the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called as "Production Function".
All factors of production like land, labour, capital and entrepreneur are required altogether at a time to produce a commodity. In economics, production means creation or an addition of utility.
4 Factors of Production In Economics - Meaning ↓
Factors of production refers to inputs required for conducting production. Input is the starting point of every production activity.
According to Prof. Benham, "Anything that contributes towards output is a factor of production."
Mere existence of anything doesn't make it a factor of production but its contribution in production process is a necessary condition. Dr. Alfred Marshall described factors of production as "Agents of Production". Cooperation among factors is essential to produce anything because production is not a job of single factor.
Four Factors of Production In Economics - Chart ↓
Following chart provides brief tabulated information on 4 factors of production.
Land, Labour, Capital and Entrepreneur - Articles ↓
- Land is a Natural Factor of Production and Features of Land.
- What is Labour and Labourer? Meaning and Features of Labour.
- What is Capital? Meaning, Features and Types of Capital.
- Who is Entrepreneur? Qualities / Skills of an Entrepreneur.