Will's Franks originally sold hotdogs and soft drinks from a cart located in front of City Hall. Then Will purchased another hotdog cart and hired someone to sell hotdogs and soft drinks near the high school. Both locations have been successful. When Will's Franks expanded to two locations, which of the following did NOT occur?
A) Will's production function changed.
B) Production increased.
C) The company increased the inputs it employs.
D) The firm employed additional capital.

Question

Quizplus · Accepted Answer

The expansion of locations did not necessarily mean a change in Will's Franks production function. The production function involves the relationship between inputs (such as labor and capital) and outputs (such as hotdogs sold). The addition of a new location does not necessarily change this relationship.

Will's Franks Originally Sold Hotdogs and Soft Drinks from a Cart