Overview
Production Dominance
Production dominance is a concept that demonstrates clearly when one production function is more efficient than the other. Given two production sets {% (\vec{x}_1, \vec{y}_1),(\vec{x}_2, \vec{y}_2) %}, set 2 is dominant to set 1 if {% \vec{x}_1 \geq \vec{x}_2 %} and {% \vec{y}_1 \leq \vec{y}_2 %}. That is, the second production function produces more output while using fewer inputs. When the inequalities are strict, we call the dominance strict dominance.
Among all possible production values, there is a set of efficient production points where each point is not strictly dominated by any other point.