If a firm uses labor to produce output, the firm's production function depicts the relationship between
A)the number of workers and the quantity of output.
B)marginal product and marginal cost.
C)the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor.
D)fixed inputs and variable inputs in the short run.

Question

Quizplus · Accepted Answer

The production function shows how output varies with changes in inputs, such as labor. Choice A correctly describes this relationship by linking the number of workers (an input) to the quantity of output produced.

If a Firm Uses Labor to Produce Output, the Firm's