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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.