Restricts itself to the case of two inputs and one output.Apart from the advantages, the production function also suffers from some limitations, which are given as follows: For example, if the price of one input falls, one can easily shift to other inputs. Gives logical reasons for making decisions.Helps in calculating the least-cost combination of various factor inputs at a given level of output.Helps in making long-term decisions, such as deciding the production level.Helps in making short-term decisions, such as optimum level of output.The uses of the production function are as follows:
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