A restaurant's production function would show the relationship between the
A) number of workers hired and the number of meals served.
B) number of workers hired and the level of profit.
C) level of profit and the number of meals served.
D) level of profit and the cost of producing the meals.
E) number of workers hired and the cost of producing the meals.

Question

Quizplus · Accepted Answer

A restaurant's production function would show the relationship between the number of workers hired and the number of meals served. It helps the restaurant to determine the optimal number of workers to hire to produce the maximum number of meals or to minimize the cost of producing meals. The relationship between profit and meals or profit and cost can also be analyzed using the production function, but it directly relates to the number of workers employed.

A Restaurant's Production Function Would Show the Relationship Between the