Suppose a firm's production function is q = LK, which exhibits

This production function means the combination of labor (L) and capital (K) to produce a particular amount of output by the firm.

Explanation:

Production function of a firm is the combination of the various inputs which leads to the production of the final output in the firm in the given quantity. The various combinations and the ways in which the inputs can be combined to each other leads to the production of the output in different quantities.

Mostly the inputs which are used by the firms to produce an output are the labor, capital, technology, land which are also known as the factors of production in terms of Economics.

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