The technological relationship between input and output is called the production function. It shows the functional relationship between the company's input and output in the production process. The main task of the production function is to produce a certain amount of products of defined quality, at a precisely determined time, at the lowest price possible and in accordance with the basic structure of assets, the qualification structure of employees and their experience. This task is considered successfully completed only when the production process brings profit. The production function affects decision-making and the selection of the best possible alternative, which must ultimately lead to the highest possible profit. The production function has 3 forms, namely: linear, degressive and progressive. The difference between these different production functions is determined by two items: the time period (long or short run) and the state of technology. The isoquant connects all combinations of inputs for which the level of production is the same, and the isocost direction describes the combinations of production inputs that amount to the same cost for the company. Determining the optimal use of production factors consists of creating a table showing isoquants and isocost lines. The optimal, i.e. the best, combination is the one that enables the fullfilment of a certain scope of production. In other words, the one that provides the market with the required amount of products, at the lowest possible costs.