The production function provides information about:
A)a firm's profit level.
B)the transformation of inputs into output.
C)the location of the firm's production.
D)a firm's market structure.

Question

Quizplus · Accepted Answer

The production function describes the various combinations of inputs (such as labor, capital, and materials) that can be used to produce a given level of output. It shows the transformation of inputs into output, and therefore provides information about a firm's production process. It does not directly provide information about profit level, production location, or market structure.

The Production Function Provides Information About