The maximum output that can be produced from a set of inputs is measured by:

Question

Quizplus · Accepted Answer

The maximum output that can be produced from a set of inputs is measured by the production function. It shows the relationship between inputs and outputs, and it illustrates the maximum output that can be produced from a given set of inputs. Therefore, (A) is the best choice. (B) is incorrect because the demand schedule shows the relationship between price and quantity demanded, it doesn't measure the maximum output that can be produced. (C) is incorrect because fixed costs are costs that do not change with the level of output produced, and they do not measure the maximum output that can be produced. (D) is incorrect because marginal cost is the cost of producing one additional unit of output, and it doesn't measure the maximum output that can be produced.

The Maximum Output That Can Be Produced from a Set