<b>Industrial Economics :-</b>Industrial economics is that branch of microeconomics which studies the economics problem of the firms and industries and the industrial relationship with the society as whole. In the words of P. R. Ferguson and G. J. Ferguson , "Industrial economics is best defined as the application of microeconomics theory to the analysis of firms, market and industries".
<b> Microeconomics :-</b>Microeconomics is that branch of economics which studies the decision of individual households, firms and Industries.
<b>Production Function :-</b>Production function expresses the physical or technical relationship between the quantity of a good produced and the factor of production necessary to produce it. Or Production function expresses the physical or technical relationship between the output and input in a process of production.
Production function can be expressed in the form of the following mathematical formula :-
Y = f ( L, K, S )
It will be read as : Production (Y) is the function (f) of labour (L) , Capital (K) , and Land (S).
According to Watson, "The relation between a firms physical production and the material factors of production is referred to as production function."
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