Which of the following best describes a "production function?"
A)It indicates the best output to produce.
B)It relates dollar inputs to dollar outputs.
C)It relates physical outputs to physical inputs.
D)It indicates the best way to combine factors to produce any given output.
E)It shows the producer which laborer is most efficient.

Question

Quizplus · Accepted Answer

A production function relates physical outputs to physical inputs, such as the amount of labor and capital used in production. It does not indicate the best output to produce (A), relate dollar inputs to dollar outputs (B), indicate the best way to combine factors for any given output (D), or show which laborer is most efficient (E).

Which of the Following Best Describes a "Production Function