Which of the following statements best describes a production function?
A) the maximum profit generated from given levels of inputs
B) the maximum level of output generated from given levels of inputs
C) all levels of output that can be generated from given levels of inputs
D) all levels of inputs that could produce a given level of output

Question

Quizplus · Accepted Answer

A production function describes the maximum level of output that can be produced from given levels of inputs, assuming that technology and other factors remain constant. It represents the relationship between inputs and outputs in a production process. Therefore, choice B best describes a production function. Choice A is incorrect because it refers to profit, which is not directly related to the production function. Choice C is incorrect because not all levels of output can be produced with the same inputs, and the production function only describes the maximum level of output that can be achieved. Choice D is incorrect because it refers to the inverse relationship, i.e., the levels of inputs required to produce a given level of output, which is not what a production function describes.

Which of the Following Statements Best Describes a Production Function