What is the relationship between the inputs employed by a firm and the maximum output that it can produce with those inputs?
A)Production function.
B)Supply curve, or supply schedule.
C)Marginal product of labour.
D)Average product of labour.

Question

Quizplus · Accepted Answer

The relationship between the inputs employed by a firm and the maximum output that it can produce with those inputs is described by the production function. The production function shows the maximum output that can be produced with various combinations of inputs such as labor, capital, and raw materials. It helps firms to make decisions about how much of each input to employ to produce the desired level of output.

What Is the Relationship Between the Inputs Employed by a Firm