The relationship Q = f(K, L) is an example of a
A) cost function.
B) production function.
C) demand equation.
D) profit equation.

Question

Quizplus · Accepted Answer

The relationship Q = f(K, L) represents a production function because it shows the maximum output (Q) that can be obtained from a given combination of inputs (K and L). A cost function is a function that shows the cost of producing a given level of output, a demand equation shows the quantity of a good that consumers are willing to buy at a given price, and a profit equation shows the difference between revenue and cost.

The Relationship Q = F(K, L) Is an Example of a