Question

What is production function?

• 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 outputs.

Answer 1

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

The arguments of the production functions are the proportions of various factor inputs that need to be employed to produce a specific output. The most common form of the production function is the Cobb-Douglas production function.