As long as a firm can freely dispose of any extra inputs it may have:
A) its production function must slope downward.
B) its production function must be concave.
C) its production function must slope upward.
D) its production function must be convex.

Question

Quizplus · Accepted Answer

If the firm can freely dispose of any extra inputs, then it must be possible for the firm to produce more output without using any additional inputs. This implies that the production function must be such that an increase in inputs results in an increase in output, indicating that the production function must slope upward.

As Long as a Firm Can Freely Dispose of Any