A production function describes the
A)intellectual possibilities for converting factor inputs into outputs.
B)amount of resources available to the representative firm.
C)technological possibilities for converting factor inputs into outputs.
D)actual process of converting factor inputs into outputs.
E)amount of labour available to produce outputs.

Question

Quizplus · Accepted Answer

A production function describes the technological possibilities for converting factor inputs into outputs. It does not encompass intellectual possibilities, resource availability, or actual processes, but rather focuses on the efficiency and potential productivity of the inputs used in production. The amount of labor available is a factor input, but not the defining characteristic of a production function.

A Production Function Describes the