The production function does not provide information about
A) the technology used in the production process.
B) the types of inputs used in the production process.
C) the relationship between changes in quantity of inputs and changes in the quantity of output.
D) the profits of producing a good.

Question

Quizplus · Accepted Answer

The production function only describes the relationship between inputs and outputs in the production process. It does not directly provide information about profits, which depend on a number of additional factors such as input costs, output prices, and market competition.

The Production Function Does Not Provide Information About