Asked by Katia Ferreira on Jun 10, 2024
Verified
A production function shows the least amount that a firm will produce given the amount of labor input.
Production Function
A mathematical model or equation that describes the maximum output of a firm, industry, or entire economy for a given set of inputs.
Labor Input
The amount of work effort, measured in hours or workforce size, used in the production of goods and services.
- Comprehend the workings of a production function and the notion of decreasing marginal productivity.
Verified Answer
JA
Jordan A MitchellJun 14, 2024
Final Answer :
False
Explanation :
A production function shows the maximum output that a firm can produce given a certain amount of inputs (like labor and capital), not the least amount.
Learning Objectives
- Comprehend the workings of a production function and the notion of decreasing marginal productivity.