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A production function is defined as the relationship between ________.
- a)The quantity of physical inputs and physical output of a firm
- b)Stock of inputs and stock of output
- c)Prices of inputs and output
- d)Price and supply of a firm.
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
A production function is defined as the relationship between ________....
In simple words, production function refers to the functional relationship between the quantity of a good produced (output) and factors of production (inputs).
“The production function is purely a technical relation which connects factor inputs and output.” Prof. Koutsoyiannis
Defined production function as “the relation between a firm’s physical production (output) and the material factors of production (inputs).” Prof. Watson
In this way, production function reflects how much output we can expect if we have so much of labour and so much of capital as well as of labour etc. In other words, we can say that production function is an indicator of the physical relationship between the inputs and output of a firm.
The reason behind physical relationship is that money prices do not appear in it. However, here one thing that becomes most important to quote is that like demand function a production function is for a definite period.
It shows the flow of inputs resulting into a flow of output during some time.
Most Upvoted Answer
A production function is defined as the relationship between ________....
Definition of Production Function
A production function is a mathematical relationship that describes the relationship between the inputs used in production and the resulting output. In other words, it shows how much output can be produced from a given set of inputs.
Components of Production Function
The production function consists of two main components:
- Inputs: The physical resources used in production such as labor, capital, and raw materials.
- Output: The quantity of goods or services produced by the firm.
Relationship between Inputs and Output
The production function shows how the quantity of physical inputs used by a firm affects the physical output produced. It is represented by a mathematical equation in which the output is a function of the inputs. For example, if we assume that labor and capital are the only inputs used by a firm, then the production function can be expressed as:
Q = f(K,L)
Where Q is the quantity of output, K is the quantity of capital, L is the quantity of labor, and f is the production function.
The production function can be used to determine the optimal combination of inputs that will produce the desired level of output at the lowest cost. This is known as the optimal input mix.
Conclusion
In conclusion, a production function is a mathematical relationship that describes the relationship between the inputs used in production and the resulting output. It is an important tool for firms and economists to understand how inputs can be combined to produce output efficiently. The correct answer to this question is option A, which states that the production function is the relationship between the quantity of physical inputs and physical output of a firm.
A production function is a mathematical relationship that describes the relationship between the inputs used in production and the resulting output. In other words, it shows how much output can be produced from a given set of inputs.
Components of Production Function
The production function consists of two main components:
- Inputs: The physical resources used in production such as labor, capital, and raw materials.
- Output: The quantity of goods or services produced by the firm.
Relationship between Inputs and Output
The production function shows how the quantity of physical inputs used by a firm affects the physical output produced. It is represented by a mathematical equation in which the output is a function of the inputs. For example, if we assume that labor and capital are the only inputs used by a firm, then the production function can be expressed as:
Q = f(K,L)
Where Q is the quantity of output, K is the quantity of capital, L is the quantity of labor, and f is the production function.
The production function can be used to determine the optimal combination of inputs that will produce the desired level of output at the lowest cost. This is known as the optimal input mix.
Conclusion
In conclusion, a production function is a mathematical relationship that describes the relationship between the inputs used in production and the resulting output. It is an important tool for firms and economists to understand how inputs can be combined to produce output efficiently. The correct answer to this question is option A, which states that the production function is the relationship between the quantity of physical inputs and physical output of a firm.
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Community Answer
A production function is defined as the relationship between ________....
Because production takes place when we apply input to get output
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A production function is defined as the relationship between ________.a)The quantity of physical inputs and physical output of a firmb)Stock of inputs and stock of outputc)Prices of inputs and outputd)Price and supply of a firm.Correct answer is option 'A'. Can you explain this answer?
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