A production function is a technological relationship between:

Question

BlackTom AI · Accepted Answer

When we talk about a production function, we are describing how inputs, or factors of production, are transformed into outputs. 
Option 1: 'factor prices and the marginal product of factors.' This combines costs with a derived concept (marginal product) that describes the additional output from an extra unit of input, not the core relationship a production function expresses. So this is not the standard definition.
Option 2: 'factors of production and factor prices.' While factor prices affect decisions and costs, the production function itself focuses on the technical relationship between inputs and output, not on prices. Therefore this pairing mischaracterizes the function's purpose.
Option 3: 'factors of production and the quantity of output produced.' This aligns with the standard definition: the production function maps inputs (factors of production) to a maximum achievable output quantity, given technological capabilities. This is the correct conceptual pairing.
Option 4: 'factor prices and the quantity of output produced.' Here, the quantity of output is linked to prices in the broader context of supply decisions, but the production function itself is not defined by factor prices; it is about inputs and output, making this option inaccurate.

BU.220.610.51.FA25 M2 Practice Quiz

A production function is a technological relationship between:

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BU.220.610.51.FA25 M2 Practice Quiz

A production function is a technological relationship between:

View Explanation

Log in for full answers

Similar Questions

Use the following graph to answer the next question, where LRATC = long-run average total cost. What happens when a firm adopts a new technology?

What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?

From the Cobb-Douglas production function we learn that there are two sources that help explain cross-country differences in per capita income: ________ and ________.

A firm's production function shows

Which of the following changes would shift the entire production function upward?

Refer to the following figure when answering the following questions. Figure 4.1: Production Function Consider Figure 4.1. For given and fixed ˉ L , the shape of this production function suggests that α in the production function Y=Kα ˉ L 1−α is ______.

An economy's factors of production and its production function determine the economy's:

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

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