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What Is The Evolution Of Production?

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Muhammad Abdullah786 Profile
Basically we find the traces of theory of production in the writing of Vonthunen in 1826 who presented this principle that if the factors of production are allocated on the basis of marginal productivity then the total output will be maximized. Then in 1894 Wickstead in production theory gave the idea that the factors of production are substitute of one another.

The major contribution regarding production function has been made by professor Hicks who presented neo-classical production function in 1939. After Hicks the economists like Carison, Danw, Samuelson and Leoneief have presented a lot of production function however at present he will confine our self to the classical and neo-classical production function.

The classical production function is concerned with short run period. Short run represents that particular period where some or at least one factor of production is kept constant, if any firm keeps the plant or machinery fixed which is not possible to change in short run and go on employing the units of labor such situation will represents short run. Accordingly the classical and short run production function is stated as:
Q = f (L) K, where Q represents total output, L represents unit of labor and K represents capital which constant here.

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