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What could be the arguments of a production function?
A Cost and Labor
B Profit and Prices
C Output and Profit
D Capital and Labor
E Any of the above
Solution
Option D
The production function relates the combination of output represented at various combinations of
labor and inputs. It tells on at what levels of capital and labor does maximise the ouput using
capital and labor as the inputs.

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What could be the arguments of a production functionA Cost and La.pdf

  • 1. What could be the arguments of a production function? A Cost and Labor B Profit and Prices C Output and Profit D Capital and Labor E Any of the above Solution Option D The production function relates the combination of output represented at various combinations of labor and inputs. It tells on at what levels of capital and labor does maximise the ouput using capital and labor as the inputs.