Factor-product relationship ( Input-output relationship)

• The level of input required producing certain level of output or output released at varying level of input is commonly called Factor –Product Relationship.
• Fertilizer application to a hectare of land, feed to a dairy cow, for example, be varied while other inputs such as fixed capital, buildings, implements and technical know- how remain the same.
• Various relationship among the input and output exist which is also known as the return function.
• It is necessary to estimate the slope of the line. The slope of the line is given by the rate of change in output in response to the change in input i.e. Slope= Change in output/ Change in input