True or false: production

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   A production function gives the maximum output for any level of inputs.

2. Statement is true

   Yes

   Statement

   In the long run there is no fixed factor.

3. Statement is true

   No

   Statement

   The short run and long run are best defined as fixed numbers of months.

4. Statement is true

   Yes

   Statement

   A production function is defined for a given technology.

Instructions

Decide whether each statement about production is true or false.

Explanation