What is meant by production inputs fixed inputs variable inp

What is meant by production, inputs, fixed inputs, variable inputs, short run, and long run How long is the time period of the long run What is a production function What is its usefulness in the analysis of the firm\'s production

Solution

(a) Production is the process of making a good (output) for consumption using the combination of inputs.Inputs can be in the form of labour, raw materials,information, machinery etc.Fixed inputs are fixed in short run like factory or machinery.Variable input can change in short run depending on cost or output demand like labour,raw materials. Long run is a time period when no input is fixed.Short run has some inputs fixed.

(b) It has no specific time.It should be long to make all factors variable.

(c) Production function shows relationship between quantity of output as a function of all the inputs.It can be used to find out amout of output that can be produced given the price of good and prices of all the inputs.