Question

Which of the following is the best definition of the 'production function'?

• A. The relationship between market price and quantity supplied.
• B. The relationship between the firm's total revenue and the cost of production.
• C. The relationship between the quantities of inputs to produce a given level of output.
• D. The relationship between the quantity of inputs and the firm's marginal cost of production.

Answer 1

Answer: (C)

The relationship between the quantities of inputs to produce a given level of output.

The best definition of the "production function is" The relationship between the quantities of inputs needed to produce a given level of output".