Leontief production function: capital (K), labor (L), output (Y)
The Leontief production function , named after Wassily Leontief , is a type (Type B) of the microeconomic production function . It is called linear limitational , since the production factors are in a fixed relationship to one another and in a fixed relationship to the output of a company or plant. The output volume reaches a limit if a production factor is not available in sufficient quantities.
Every “recipe” production in the kitchen or in the laboratory is an example of the Leontief production function. Do you need z. For example, for a cake made according to a recipe, eggs, grams of flour and liters of milk can be used to make
cakes with available eggs, grams of flour and liters of milk
. In this case the eggs are limitational; one could have made cakes with eggs .