Which of the following is NOT an assumption associated with the definition of a production function?

Technology remains constant

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Both inputs and outputs are measured in monetary units

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The function shows the maximum level of output possible with a given combination of inputs

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All units of the inputs are homogeneous

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Solution

The correct option is B
Both inputs and outputs are measured in monetary units

Inputs and outputs are not generally measured in monetary units.

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Similar questions

Q. Which of the following statement best describe the general form of a production function?
(i) It is purely technological relationship between quantities of input and quantities of output.
(ii) It represent the technology of an organization/sector of an economy.
(iii) Prices of inputs or of the output do not enter into the production function.
(iv) It is flow concept describing the transformation of inputs into output per unit of time.

Q. The production function specifies the output that can be produced with the given inputs.

The production function specifies the maximum output that can be produced with a given quantity of inputs. It is defined for a given state of engineering and technical knowledge.

Q. A/An is the set of all possible combinations of 2 inputs that yield the same maximum possible output.

Q. According to ________, "an increase in some inputs relative to other fixed inputs will, in a given state of technology, cause output to increase but after a point the extra output resulting from the same additions of extra inputs will become less and less"

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Which of the following is NOT an assumption associated with the definition of a production function?

The correct option is B Both inputs and outputs are measured in monetary units Inputs and outputs are not generally measured in monetary units.

The correct option is B
Both inputs and outputs are measured in monetary units

Inputs and outputs are not generally measured in monetary units.