What does the production function describe?
A) the relationship between the quantity of inputs utilized and the quantity of output produced
B) the most cost-effective method of combining various inputs in the production process
C) how inputs are most profitably used in production
D) the relationship between a firm's revenue and its level of production

Question

Quizplus · Accepted Answer

The production function describes the relationship between the quantity of inputs used and the quantity of output produced. It shows how much output can be produced from a given amount of inputs, and how changes in input quantities affect output.

What Does the Production Function Describe