A production function:
A) defines the minimum amount of output that can be produced with inputs such as capital and labor.
B) defines the average amount of output that can be produced with inputs such as capital and labor.
C) represents the technology available for turning inputs into output.
D) is determined only by the expenditures on R&D.

Question

Quizplus · Accepted Answer

A production function represents the technology available for turning inputs into output. It does not define the minimum or average amount of output that can be produced with inputs, nor is it determined only by expenditures on R&D.

A Production Function