Apple production is an important source of employment and income in West Azarbayjan especially in the central part of the province namely the city of Urmia. Favourable natural and geographic conditions of the province for producing and exporting this commodity along with rationalizing the production and marketing activities can bring about a high comparative advantage for the producttion of apple. In addition to generating employment and income, apple production and its processed products could become an important export item and source of foriegn exchange earning. Apple farmers face various problems and during the recent droughts the problems have become more intensive. Part of the problem is related to production. The purpose of this study is to make an economic analysis of apple production in Urmia, using linear and Cobb-Douglas production functions, ordinary least squares regression method, and computer software SPSS. By selecting a sample of apple farmers and using stratified random method as well as interview and filling out the questionnaire, necessary data were collected and production functions were estimated. Independent variables of production functions were costs of manure, fertilizer, labor, machinery, chemicals, other costs, and land per meters. Dependent variable was the value of products, including apple and fodder. Coefficients of determination were, 69 and. 61. The estimated coefficients, except for fertilizer, were positive. Fertilizer negative coefficient is due to complementarity relation between water and fertilizer and lack of apple farmers readiness to cope with drought which makes the efficient use of irrigation methods necessary. Sum of coefficients in Cobb-Douglas production function was larger than 1 indicating increasing returns to scale which means increasing the extent of horticultural activity causes cost economies. Production elasticities, except for fertilizer which was negative, were positive and smaller than 1. Labor elasticity was much higher than those of most inputs. Due to large area of land under apple cultivation and intensive unemployment problem in West Azarbayjan, high labor elasticity could provide very good ground for more employment and decrease of unemployment in the province.