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A Production Function Is a Relationship That Shows The

Question 16

Multiple Choice

A production function is a relationship that shows the:


A) difference between total revenues and total costs.
B) quantity of each input that a firm uses and the quantity of output that the firm can produce as a result.
C) satisfaction that a consumer derives from each unit of consumption.
D) product of the quantity of a good and the difference between the price of the good and the average total cost of the quantity produced.

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