alleryStart learning →A production function is assumed to specify what for given inputs?
AMinimum possible output
BAverage market price
CMaximum possible output
DTotal fixed cost
Answer & Solution
Correct answer: C. Maximum possible output
To qualify as a mathematical function, it is taken to give the maximum output the inputs can yield, forming a frontier.
Keep practising Theory of Production
Browse all Theory of Production questions for CA Foundation, or explore more Business Economics topics.
Related questions
With fixed unit input costs, isocost curves have which shape?Widening gaps between isoquants of equal output steps indicate what?Under declining MRTS, an isoquant is what relative to the origin?A line joining tangency points of isoquants and isocosts is called what?At least cost, the ratio of marginal products equals which ratio?The cost-minimising input mix is at tangency of isoquant and which line?With perfect complements, inputs can be combined efficiently only how?If two inputs are perfect substitutes, how does X replace Y?