A production function shows the
A)Minimum amount of output that can be obtained from alternative combinations of inputs.
B)Maximum quantity of inputs required to produce a given quantity of output.
C)Maximum output of a good attainable from different combinations of factor inputs.
D)Output capacity of the entire economy.

Question

Quizplus · Accepted Answer

A production function shows the maximum output of a good attainable from different combinations of factor inputs. It describes the relationship between the inputs used in production and the output achieved. It shows how much output can be produced with a given set of inputs, or how many inputs are needed to produce a given level of output.

A Production Function Shows the