Question 8
Theory of ProductionWhich of the following BEST describes the 'production function'?
- A.It indicates the best output to produce
- B.It relates naira inputs to naira outputs
- C.it relates physical outputs to physical inputs
- D.It indicates the best way to combine factors to produce any given output.
Show the answer and explanation
Answer: C (it relates physical outputs to physical inputs)
Explanation
A production function shows the physical relationship between the quantities of inputs used and the quantity of output produced.