A production function shows the relationship between
A)variable costs and total costs.
B)a fixed input and output.
C)total output and total costs.
D)fixed costs and total costs.
E)a variable input and output.

Question

Quizplus · Accepted Answer

A production function depicts the relationship between a variable input (such as labor or raw materials) and the resulting level of output. It is a mathematical representation of how inputs are transformed into outputs. Therefore, the correct choice is E, which refers to a variable input and output.

A Production Function Shows the Relationship Between