A function that indicates the maximum output per unit of time that a firm can produce, for every combination of inputs with a given technology, is called:
A) an isoquant.
B) a production possibility curve.
C) a production function.
D) an isocost function.

Question

Quizplus · Accepted Answer

A production function shows the maximum output a firm can produce with every combination of inputs and a given technology. An isoquant represents different combinations of inputs that can produce the same level of output. A production possibility curve shows the maximum output that can be produced with given resources and technology, while an isocost function shows the minimum cost of producing a given level of output.

A Function That Indicates the Maximum Output Per Unit of Time