The production function

We describe the technology available to a firm by a production function. The amounts of the inputs the firm uses are given by a vector (list) (z₁, ..., z_n), where z_i is the amount of input i. The production function F associates with every such vector an output F (z₁, ..., z_n). We interpret this output to be the maximal output the firm can produce when it has z₁ units of input 1, z₂ units of input 2, ..., z_n units of input n.

Examples and exercises on production functions