1. Production Function
A production function shows the functional relationship given by technology between a firm’s physical rates of input and its physical rates of output per unit of time.
TPP = f ( a, b, c, … )

2. Characteristics of a Production Function
Production refers to the transformation of inputs into output;
A production function is a flow concept;
A production function is a physical, technological, or engineering concept, and yet it has an economic dimension to it; and
In production analysis, factors of production can be separated into fixed and variable factors.

3. Value Relationships Total Product (TVP) TVP = TPP * P
Marginal Value Product (MVP)
MVP = MPP * P
Marginal Revenue Product (MRP)
MRP = MPP * MR
Marginal Factor Cost (MFC)

4. Functional Relationships in Value Terms