A firm's _______ contains all combinations of inputs and outputs that are possible given the firms' technology.
A) production possibilities set
B) efficient production frontier
C) production function
D) production possibilities curve

Question

Quizplus · Accepted Answer

A firm's production possibilities set represents all possible combinations of inputs and outputs that can be produced. The other choices are not accurate as a production function is a specific equation that relates inputs to outputs for a given technology, an efficient production frontier is a graph that shows the most efficient combinations of producing two goods, and a production possibilities curve is a graph that shows the maximum combinations of two goods that can be produced given a fixed amount of resources.

A Firm's _______ Contains All Combinations of Inputs and Outputs