Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is

Based on this assumption, the production function is:

L = f (H, N)

This means that Life expectancy is dependent on (H) Health expenditures and (N) Nutrition expenditures.

In microeconomics, this function creates a correlation between increased health spending and good nutrition on increased life expectancy.