A production function assumes a given:
A) technology.
B) set of input prices.
C) ratio of input prices.
D) amount of capital and labor.
E) amount of output.

Question

Quizplus · Accepted Answer

A production function assumes a given technology, which represents the methods and procedures used to produce output using inputs. The other choices (B, C, D, and E) can vary depending on market conditions and the availability of resources.

A Production Function Assumes a Given