The production set represents:
A)the set of all technically feasible combinations of inputs and outputs.
B)the technically efficient combinations of inputs and outputs.
C)the maximum output the firm can produce from a given level of inputs.
D)the minimum amounts of inputs necessary to produce a given level of output.

Question

Quizplus · Accepted Answer

The production set represents all technically feasible combinations of inputs and outputs. It includes both efficient and inefficient combinations. The production set is the set of all technically feasible combinations of inputs and outputs, meaning all possible combinations of inputs and outputs that a firm can produce with its technology and resources. It includes both efficient and inefficient combinations.

The Production Set Represents