A production function for widgets will _____.
A)show the relationship between the inputs used in the production of widgets and the cost of acquiring these inputs
B)identify the least quantity of inputs that can be used to produce a given level of widgets
C)identify the maximum quantity of widgets that can be produced given the budget of the firm
D)identify the maximum quantity of widgets that can be produced by each specific combination of inputs

Question

Quizplus · Accepted Answer

A production function shows the relationship between the inputs used (such as labor and capital) and the maximum quantity of output (in this case, widgets) that can be produced with those inputs. Therefore, option D is the correct choice. Option A refers to the cost of acquiring inputs and is not related to the production function itself. Option B is referring to the concept of marginal productivity, which is related to the production function but is not the same thing, and option C is not directly related to the production function either.

A Production Function for Widgets Will _____