A production function describes the
A) technological possibilities for converting factor inputs into outputs.
B) intellectual possibilities for converting factor inputs into outputs.
C) amount of resources available to the representative firm.
D) actual process of converting factor inputs into outputs.
E) amount of labour available to produce outputs.

Question

Quizplus · Accepted Answer

A production function shows the maximum possible output that can be produced from a given set of inputs using available technology. It describes the technology available to a firm to convert factor inputs into outputs.

A Production Function Describes the