For a firm, the relationship between the quantity of inputs and quantity of output is called the
A)profit function.
B)production function.
C)total-cost function.
D)quantity function.

Question

Quizplus · Accepted Answer

The production function describes the relationship between inputs (such as labor and capital) and outputs (such as goods or services) produced by a firm. It is a key concept in economics and helps firms determine the optimal levels of inputs to use in order to maximize output or minimize costs. The other options (profit function, total-cost function, quantity function) are not as directly relevant to this relationship between inputs and outputs.

For a Firm, the Relationship Between the Quantity of Inputs