35.Ī production function represents the mathematical relationship between a business's production inputs and its level of output. Macro-economic Theory: A Mathematical Treatment. It was named after Wassily Leontief and represents a limiting case of the constant elasticity of substitution production function.įor the simple case of a good that is produced with two inputs, the function is of the form q = Min ( z 1 a, z 2 b ). In economics, the Leontief production function or fixed proportions production function is a production function that implies the factors of production will be used in fixed (technologically pre-determined) proportions, as there is no substitutability between factors. Two input Leontief Production Function with isoquants
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