Which of the following correctly describes a production function?
A)A production function shows the minimum output that can be produced with given inputs.
B)A production function relates employment of inputs to output.
C)A production function identifies output-cost relationships.
D)A production function identifies the profit maximizing level of output.

Question

Quizplus · Accepted Answer

A production function shows the relationship between inputs and output. It describes how much output can be produced from a given amount of inputs. Therefore, option B is the correct choice. Option A is incorrect because a production function does not show the minimum output, it shows the maximum output that can be achieved with given inputs. Option C is incorrect because a production function does not describe output-cost relationships, but rather input-output relationships. Option D is also incorrect because a production function does not identify the profit maximizing level of output, but rather shows the relationship between inputs and output.

Which of the Following Correctly Describes a Production Function