Question

What is the production​ function? The production function is the relationship between A. the output produced by a firmthe output produced by a firm and the minimum​ long-run average cost of production. B. returns to scalereturns to scale and economies of scopeeconomies of scope. C. the output produced by a firmthe output produced by a firm and its cost of production. D. the inputs employed by a firm and the maximum output it can produce with those inputs. E. the output produced by a firm in the short run and in the long run.

Answer 1

Answer: Option (D)

Explanation:

In discipline such as economics, production function tends to provide a technological relation in between the quantities of input, i.e. capital and labor and the quantities of the output, i.e. commodities and goods. This function is referred to as one of key concepts in the neoclassical theories that are used in order to define the marginal product and thus to distinguish the allocative/distribution efficiency.