Which of the following statements is FALSE?
A) Included in the firm's short-run production function are both fixed and variable inputs.
B) An efficient firm can obtain more output than the production function shows.
C) The production function shows the technical relationship between a firm's inputs and outputs.
D) The production function presents the technically efficient methods of combining inputs to produce output.

Question

Quizplus · Accepted Answer

An efficient firm cannot obtain more output than the production function shows because the production function represents the maximum amount of output that can be produced with a given set of inputs. Efficiency means producing the maximum amount of output from a given set of inputs, not exceeding it.

Which of the Following Statements Is FALSE