Leontief Production Function

The Leontief Production Function models how inputs are combined to produce output, assuming fixed proportions. It means you need specific amounts of inputs—like labor and capital—in exact ratios; using more of one without increasing the other won’t increase production. This reflects industries where components are used in a rigid, non-substitutable way, such as manufacturing with specialized equipment. The function emphasizes that the output depends on these fixed input combinations, highlighting the limits of flexibility in production processes. It’s a useful way to analyze industries with strict technical relationships between inputs and outputs.