Asked by Victor Bedoya on Jun 13, 2024
Verified
If a firm uses labor to produce output, the firm's production function depicts the relationship between
A) the number of workers and the quantity of output.
B) marginal product and marginal cost.
C) the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor.
D) fixed inputs and variable inputs in the short run.
Production Function
An equation or graph that shows the maximum output a firm can produce with a given set of inputs, under the current technology.
Labor
The human effort, both physical and mental, used in the production of goods and services, a critical factor in determining productivity and economic output.
Output
Output refers to the total quantity of goods and services produced by an economy or business in a specific period.
- Understand the concept of the marginal product of labor and how it relates to the production function.
Verified Answer
AS
aftab shaikhJun 18, 2024
Final Answer :
A
Explanation :
The production function shows how output varies with changes in inputs, such as labor. Choice A correctly describes this relationship by linking the number of workers (an input) to the quantity of output produced.
Learning Objectives
- Understand the concept of the marginal product of labor and how it relates to the production function.