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Question : The production function shows the relationship between:

Option 1: Price and quantity demanded
    

Option 2: Price and quantity supplied
  

Option 3: Input and output

 

Option 4: Expenditure and income


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Input and output


Solution : The correct answer is (c) input and output.

The production function is an economic concept that depicts the relationship between the inputs (factors of production) used in the production process and the resulting output or quantity of goods and services produced. It demonstrates how different combinations of inputs lead to different levels of output.

Inputs in the production function can include physical inputs such as labor, capital (machinery, equipment), raw materials, and technology. The production function illustrates how these inputs are combined and transformed into output.

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