Theory of Production

Discipline: Economics

Analysis concerned with transforming factor inputs into outputs according to a production function.

Production is dependent on technology, the mix of factor inputs, factor prices and marginal productivity.

The Modern Cambridge School envisages an economic model which encompasses sociological, historical and psychological factors as well as pure economic ones. It attacks neo-classical economics for its use of the aggregate production function particularly in growth theory.

Also see: cambridge capital controversies, cobb-douglas production function, neo-classical growth theory, roundabout method of production

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