Which of the following best describes a production function?
A) The relationship between consumer preferences and market demand.
B) The relationship between the quantity of labor employed and total cost.
C) The relationship between the maximum amounts of output a firm can produce and various quantities of inputs.
D) The relationship between price and quantity supplied by sellers in a market.

Question

Quizplus · Accepted Answer

A production function describes the relationship between the inputs used in production and the maximum output that can be produced with those inputs. It helps a firm determine the most efficient way to produce its output given the available resources. The production function can be expressed mathematically as Q = f(K,L), where Q is output, K is capital, and L is labor.

Which of the Following Best Describes a Production Function