<P> The inputs to the production function are commonly termed factors of production and may represent primary factors , which are stocks . Classically , the primary factors of production were Land , Labour and Capital . Primary factors do not become part of the output product , nor are the primary factors , themselves , transformed in the production process . The production function , as a theoretical construct , may be abstracting away from the secondary factors and intermediate products consumed in a production process . The production function is not a full model of the production process : it deliberately abstracts from inherent aspects of physical production processes that some would argue are essential , including error , entropy or waste , and the consumption of energy or the co-production of pollution . Moreover , production functions do not ordinarily model the business processes , either , ignoring the role of strategic and operational business management . ( For a primer on the fundamental elements of microeconomic production theory , see production theory basics ) . </P>
<P> The inputs to the production function are commonly termed factors of production and may represent primary factors , which are stocks . Classically , the primary factors of production were Land , Labour and Capital . Primary factors do not become part of the output product , nor are the primary factors , themselves , transformed in the production process . The production function , as a theoretical construct , may be abstracting away from the secondary factors and intermediate products consumed in a production process . The production function is not a full model of the production process : it deliberately abstracts from inherent aspects of physical production processes that some would argue are essential , including error , entropy or waste , and the consumption of energy or the co-production of pollution . Moreover , production functions do not ordinarily model the business processes , either , ignoring the role of strategic and operational business management . ( For a primer on the fundamental elements of microeconomic production theory , see production theory basics ) . </P>
functions of capital as a factor of production
functions of capital as a factor of production
inputs
inputs