Answer:
The production function allows the manager to calculate the impact of changes in inputs, its efficiency and yields in the output.
Explanation:
The production function, also called Cobb-Douglas Production Function shows the output as the result of the combination or relationship of the factors of production, being the most common capital (K) and labor (L). Its basic form is Q (L,K) = A * L^β * K^α, where
Q = quantity produced (output)
A = Total Factor Productivity (TFP)
L = Amount of labor spent on production
K = Amount of physical capital input
α and β = output elasticities of capital and labor, respectively
