Production Theory

  • Michael R. Hammock
  • J. Wilson Mixon


This chapter contains six sections. The first considers the nature of production and a production function. The second introduces the equation that we use to illustrate production theory. The third section looks at a specific aspect of that theory, returns to scale. In this section the inputs are used in a fixed proportion, so that the output can be phrased in terms of the employment of a single input. The fourth section shows aspects of production when employment of either input can be varied over wide ranges. The fifth section considers “the short run,” a period during which the employment of only one input can be varied. The final section examines substitution between inputs.


Production Function Average Product Marginal Product Employment Level Product Curve 
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Copyright information

© Springer Science+Business Media, LLC 2013

Authors and Affiliations

  • Michael R. Hammock
    • 1
  • J. Wilson Mixon
    • 2
  1. 1.Department of Economics and FinanceMiddle Tennessee State UniversityMurfreesboroUSA
  2. 2.Berry CollegeMount BerryUSA

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