A production function is a table,a graph,or an equation showing the:
A) least-cost method of producing output.
B) optimal combination of inputs.
C) maximum output that can be achieved from specified levels of inputs.
D) combinations of inputs that can be produced with equal costs.
E) optimal production technology that a firm should employ.

Question

Quizplus · Accepted Answer

A production function shows the maximum output that can be produced with given levels of inputs. It does not show the least cost method of production or the optimal combination of inputs. It can also show the relationship between inputs and outputs, and can be presented in a table, graph, or equation form. Therefore, the correct choice is C.

A Production Function Is a Table,a Graph,or an Equation Showing