A production function describes the
A) technological possibilities for converting factor inputs into outputs.
B) intellectual possibilities for converting factor inputs into outputs.
C) amount of resources available to the representative firm.
D) actual process of converting factor inputs into outputs.
E) the amount of labour available to produce outputs.

Question

Quizplus · Accepted Answer

A production function outlines the technological possibilities for converting factor inputs into outputs. It specifies the mathematical relationship between the quantity of inputs utilized in production and the maximum feasible quantity of output that can be produced, given the existing technology.

A Production Function Describes the