The production function is the relationship between the maximum output attainable and the
A)price of output.
B)change in technology.
C)demand for output.
D)quantities of inputs used.
E)amount of labour used.

Question

Quizplus · Accepted Answer

The production function is a relationship between the maximum output that can be produced and the quantities of inputs used. It shows how much output can be produced with various combinations of inputs. Changes in the price of output, demand for output, or amount of labour used do not directly affect the production function. However, changes in technology can affect the production function by altering the relationship between inputs and outputs.

The Production Function Is the Relationship Between the Maximum Output