Production Functions and the Possibility of Using Them in Economic Calculations

In the present stage in the development of our country, at a time when the main task in the economic realm â as emphasized by L. I. Brezhnev in the report "On the Fiftieth Anniversary of the Union of Soviet Socialist Republics" â consists in "sharply altering the orientation, shifting the emphasis to intensive methods of economic management, and thereby bringing about a serious increase in the effectiveness of the economy," more and more importance is attached to the scientific analysis of various factors entailed in the growth of production and to the clarification of the part played in the latter by extensive and intensive factors, their nature, and the contribution of each of them to the overall growth of production. Corresponding studies will make it possible to forecast more precisely the future volume and growth rate of production and to find the combinations of growth factors that are optimal from a socioeconomic point of view at any level â from the individual enterprise to the national economy as a whole.