Question

The theory of production helps _____________________.

• A. In the analysis of relations between costs and volume of output
• B. The theory of demand of firms
• C. The macro theory of distribution
• D. All of these

Answer 1

The correct option is D All of these

The theory of production helps in:

In the analysis of relations between costs and volume of output: means it is a relationship between the cost incurred to produce goods and the volume of goods produced.

It helps us study the theory of demand of firms in the sense that it helps to take better decisions regarding the production and supply.

It also helps in the study of the theory of distribution at the macro level as we can derive it from the individual units.