A firm's _______ contains all combinations of inputs and outputs that are possible given the firms' technology.
A) Production possibilities set
B) Efficient production frontier
C) Production function
D) Production possibilities curve

Question

Quizplus · Accepted Answer

The production possibilities set (also known as the production possibilities set) represents all the possible combinations of inputs and outputs that can be produced by a firm. It is a more general term than the production possibilities curve or efficient production frontier, which refer specifically to the combinations that are efficient or optimal given certain constraints or assumptions. The production function describes the relationship between inputs and outputs for a given technology, but does not necessarily imply any limits on the combinations that can be produced.

A Firm's _______ Contains All Combinations of Inputs and Outputs