The production function presumes that maximum output will be realized from the inputs. It also includes three assumptions. The first of these declares that there are precise qualities and quantities that can be established for the input factors. There must be ideal amounts and types of raw materials, labour, supervision and managerial input Second, the production process is distinctly inter-related through logical technological input-output relationships, so that the exact outcomes are known; the process is a closed system with no exogenous variables to disrupt it. Finally there is a known output and established objective in the factors that determine the market side outcome. The previous two major variables determine the revenue, costs, price and so on.