Question

dummy Which of the following is an assumption associated with the definition of a production function?

• A. Technology remains constant
• B. Both inputs and outputs are measured in monetary units
• C. The function shows the maximum level of output possible with a given combination of inputs
• D. All units of the inputs are homogeneous

Answer 1

The correct option is B

Both inputs and outputs are measured in monetary units

Both inputs and outputs are measured in monetary units, is one of the assumptions of a production function.