Cost functions show
A) that one of the functions of production is to incur costs.
B) the relationship between various costs of production and output.
C) the amount of output per unit of input.
D) the demand for factors of production.
E) how production costs are derived from input-output price ratios.

Question

Quizplus · Accepted Answer

Cost functions describe how the costs of producing goods or services change as the level of output changes. They show the relationship between various costs of production and output. This information is important for businesses in determining optimal production levels and pricing strategies.

Cost Functions Show