Fisheries Economics

3.1.9.3 Factor-product relationship

Production is the transformation of one or more inputs into one or more outputs. Production function shows the functional relationship between the inputs used and output obtained. A production function may be specified as follows:

Y=f(x)

Where

Y = output

F= functional coefficient

X=vector of inputs

For example, production function of freshwater fish such as carps may be specified as follows:

Y=f(X₁, X₂, X₃, X₄, X₅, X₆)

Where

Y=output of farmed fish in kg/ha

X₁=time used in kg/ha

X₂ =Manure used in kg/ha

X₃=Fertilizer used in kg/ha

X₄=Seed or fingerlings in Nos/ha

X₅=Feed used in kg/ha

X₆=power in units consumed

The classical production curve shows that production region II alone is rational and the other regions, I & III are irrational