Question

What is meant by production process?

• A. Relationship between quantity of output produced and time taken to produce the output.
• B. Relationship between a factor of production and the utility created by it.
• C. Relationship between fixed factors of production and variable factors of production.
• D. Technical relationship between physical inputs and physical output.

Answer 1

The correct option is D Technical relationship between physical inputs and physical output.

The production process is the purely technological relationship between quantities of input and quantities of output. It is a flow concept describing the transformation of inputs into output per unit of time. It is described by the production function that represents the technology of an organization and the sector of the economy that it operates in.