Production function Economics

When the amount of a factor increases the total output

• Decreases

• is maximum

• Increases

• becomes zero

_____________ is a function of inputs.

• Raw Materials

• Output

• Production Function

• Labour

________ an addition to the total production by the employment of an extra unit of a factor.

• Average Product

• Total Product

• Marginal Product

• Output

Output is the _________ variable

• Independent

• Dependent

The term production in economics means-

• creation of economic utilities

• rendering of a service only

• creation of a physical product only

• none of the above

The production function means relationship between

• cost of input

• Physical input to physical output

• cost of output

• wages for production

A production function is an expression of _____ relation between inputs and outputs.

• quantitative

• qualitative

• monetary

• economic

A short run production function is one in which-

• at least one factor is fixed

• at least one factor is variable

• all factors are fixed

• all factors are variable

Use the following two statements to answer this question:

I. Production functions describe what is technically feasible when the firm operates efficiently.

II. The production function shows the least cost method of producing a given level of output.

• Both I and II are true.

• I is true, and II is false.

• I is false, and II is true.

• Both I and II are false.

Which of the following inputs are variable in the long run?

• Labour

• Capital and equipment

• Plant size

• all of above