The Production Process of Education

This chapter analyses the production process of the educational services. It uses the tools of the microeconomics in order to present and explain how public and private schools produce education. It is presented and analyzed the production function of educational services in both short run and long run period. It short run period the quantity of educational services depends on the quantity of labour used taking as constant the quantity of capital (technology). In long run period the quantity of educational services is determined by the optimal combination of two inputs, labour and capital. Furthermore, we present the meaning of economic efficiency of the education system and their determinants. The relationship between efficiency and equity in the education system is analyzed. The impact of this relationship on the well-being of the people is also analyzed. This chapter: