A 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

A production function shows the relationship between the maximum output attainable and the quantities of inputs used. It does not depend on the price of output, change in technology, or demand for output specifically. While labour is often one of the inputs used, the production function can also include other inputs such as capital and raw materials.

A Production Function Is the Relationship Between the Maximum Output