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Explain the term production function in the economics.
Production Function
A production function is the association between the quantity of inputs a firm utilizes and the quantity of output this produces.
A fixed input is an input that quantity is fixed and can’t be varied.
A variable input is an input that quantity the firm can change.
The final and most important part of the methodology is the impulse response functions which will provide the most information with regards to the aim of the project. In order to a
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