Which is true?
A)Production functions consider only the value added part of a particular production process.
B)Production functions are as subjective as utility functions.
C)Production functions count raw materials, but not labor, as inputs into the production process.
D)Production functions do not count technology into the production process.

Question

Quizplus · Accepted Answer

Production functions only consider the value added part of the production process, which means the output that exceeds the value of the inputs used in the production process. Raw materials and labor are both considered inputs, and technology can also be included in the production function. Utility functions, on the other hand, are more subjective and relate to levels of satisfaction or happiness.

Which Is True