Linear Production Function:
- Output is directly proportional to the input(s).
- There is no diminishing or increasing returns to scale.
- Equation: Q = bx + a, where Q is output, x is input, b is the slope, and a is the intercept.
Cobb-Douglas Production Function:
- Output is a power function of the inputs.
- Exhibits diminishing returns to scale.
- Equation: Q = Ax^αy^β, where Q is output, x and y are inputs, A is a constant, and α and β are exponents.
Leontief Production Function:
- Output is limited by the minimum input.
- There are no substitution effects between inputs.
- Equation: Q = min(ax, by), where Q is output, x and y are inputs, and a and b are constants.
Translog Production Function:
- A more flexible production function that includes quadratic and interaction terms.
- Captures variable substitution effects and returns to scale.
- Equation: Q = β0 + β1x + β2y + β3x^2 + β4y^2 + β5xy + u, where Q is output, x and y are inputs, β's are parameters, and u is an error term.
Homothetic Production Function:
- All isoquants have the same shape and exhibit constant returns to scale.
- Output can be expanded or contracted proportionally without changing the input ratio.
- Equation: Q = f(ax, ay), where Q is output, x and y are inputs, a is a constant, and f() is the unknown production function.
Non-Homothetic Production Function:
- Isoquants have different shapes and exhibit non-constant returns to scale.
- Output cannot be expanded or contracted proportionally without changing the input ratio.
- Equation: Q = f(x, y), where Q is output, x and y are inputs, and f() is the unknown production function that allows for non-homotheticity.