Production functions indicate the relationship between
A) factor costs and output prices.
B) factor inputs and the quantity of output.
C) the value of inputs and average costs.
D) factor inputs and factor prices.

Question

Quizplus · Accepted Answer

Production functions show how much output can be produced from a given set of inputs. In other words, they illustrate the relationship between factor inputs (such as labor and capital) and the quantity of output that can be produced.

Production Functions Indicate the Relationship Between