The relationship between the inputs employed by a firm and the maximum output that it can produce with those inputs is the firm's
A) production function.
B) supply curve, or supply schedule.
C) marginal product of labour.
D) average product of labour.

Question

Quizplus · Accepted Answer

The relationship between inputs and maximum output is known as the firm's production function. This function shows the maximum amount of output that can be produced from a given set of inputs. Therefore, option A is the correct answer. Option B refers to the amount of output that a firm is willing to produce at each price level, option C to the additional output produced by an additional unit of labor, and option D to the average output produced per unit of labor.

The Relationship Between the Inputs Employed by a Firm and the Maximum