Final answer:
In a production function, the elements used in models typically include variables, constants, inputs, and outputs. The production function is a concept to express the relationship between inputs, such as labor and capital, and the quantity of output produced. It is important to differentiate between fixed and variable inputs, the latter of which can be adjusted readily.
Step-by-step explanation:
The parameters or factors that are put into models are typically: 1) Variables, 2) Constants, 3) Inputs, and 4) Outputs. To understand the concept of a production function, it is crucial to differentiate between these types. Inputs or factors in a production function include resources such as labor, materials, and machinery that are used to produce goods and services; also known as factors of production. Within these inputs, there is a distinction between fixed inputs and variable inputs. Fixed inputs do not change in the short term, such as the machinery in a factory, while variable inputs can be adjusted quickly, like ordering more ingredients or hiring additional staff.
A shorthand form for the production function often used by economists is Q = f[L, K], where Q represents the quantity of output, L represents labor, and K stands for capital, indicating the relationship between these inputs and the production output.