What does the production function show?
A)The total cost of producing a given quantity of output.
B)The maximum output that can be produced from each possible quantity of inputs.
C)The technology used to produce output.
D)The incremental output gained by improving the production process.

Question

Quizplus · Accepted Answer

The production function shows the maximum output that can be produced from each possible quantity of inputs. It is a mathematical expression that shows the relationship between the inputs used in production and the output achieved.

What Does the Production Function Show