Question: Production function is the relationship between the flow of inputs and the resulting flow of outputs in a production process. The reason this is important is, both of these totals have a direct affect/influence of the profit and cost in order to produce something. If the product costs more to make, and is sold cheaply for example, this is affecting the profit made.

The same is applied if you reverse the said concept, just more likely the total profit could be more. This relationship needs to be established in order to analyze how much it is going to cost to produce a product, as well, how much can be made from that said product. This relationship must be heavily examined, in order to determine is the worth of the product that the company is producing cost effective, and is there enough Monterey gain from it to be profitable.