The firm's production function is the relationship between the firm's _______and its maximum________ .

Question

Quizplus · Accepted Answer

The production function relates the inputs used by a firm (such as labor, capital, and materials) to the level of output it can generate with that combination of inputs. In other words, it shows the maximum amount of output the firm can produce for each possible combination of inputs. Therefore, the correct answer is C - the inputs used by the firm and its outputs. A and D are incorrect because they do not capture the full relationship described by the production function. While costs and profits are important considerations for a firm, they are not directly related to the production function itself. B is incorrect because costs are just one aspect of the firm's inputs, and not the only input that affects output.

The Firm's Production Function Is the Relationship Between the Firm's