Which of the following statements about a production function is correct for a firm that uses labor to produce output?
A)The production function depicts the relationship between the quantity of labor and the quantity of output.
B)The slope of the production function measures marginal product.
C)The slopes of the production function and the total cost curve are inversely related; if one is increasing, the other is decreasing.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A) The production function for a firm that uses labor to produce output depicts the relationship between the quantity of labor and the quantity of output.
B) The slope of the production function measures marginal product, which is the additional output produced by adding one more unit of labor.
C) The relationship between the slopes of the production function and the total cost curve is not always inverse. The slope of the production function describes the firm's productivity given a level of input, while the slope of the total cost curve describes how much the cost of production increases as the level of output increases. These two slopes can be positively or negatively related, depending on the specific circumstances of the firm.

Which of the Following Statements About a Production Function Is