Managerial Economics and Production Functions - Theoretical Review and Practical Applications

Abstract

The objective of this paper is to review the important economic concept of production functions with regard to how they influence business decisions both in the short and long run, and also shows how practically they determine how firms compete to make profit. This paper is a short review of an important economic concept so the approach adopted as methodology was that of a qualitative approach based on relying on secondary data. It is hoped that the paper will stimulate further reading and research by researchers and students alike.