A production function
A) shows the functions of production such as income, welfare, and employment.
B) reflects the technological constraints with which a firm must reckon.
C) shows the output necessary to produce one unit of input.
D) is a theoretical concept having no relevance to real-world production.
E) quantifies the amounts of variable inputs needed to produce fixed inputs.

Question

Quizplus · Accepted Answer

A production function is a mathematical expression that shows the maximum amount of output that can be produced from a given set of inputs, taking into account the technological constraints involved in the production process. It reflects how the firm's production process works and what inputs are required to produce a certain level of output. Choices A, C, D, and E do not accurately describe what a production function is.

A Production Function