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the concept is valid.

Criticisms of the production function theory

There are two major criticisms of the standard form of the production function.

On the concept of capital

During the 1950s, '60s, and '70s there was a lively debate about the theoretical soundness of production functions (see the Capital controversy). Although the criticism was directed primarily at aggregate production functions, microeconomic production functions were also put under scrutiny. The

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