What is a production function?
What will be an ideal response?
Production is a process that transforms resources into goods or services. A production function is a relationship between inputs and output. It is a technological relationship and not an economic relationship.
You might also like to view...
Other things being equal, the quantity theory of money suggests that any increase in the money supply
A) results in a decrease in the aggregate price level. B) causes the aggregate level of nominal Gross Domestic Product (GDP) to fall. C) causes a reduction in the demand for money. D) results in a proportionate increase in the price level.
Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $7. What does profit equal when quantity equals 2?
A) $14 B) -$2 C) $16 D) $2
Matt has $2000 saved for a trip at Spring Break. Over Christmas break he decides to spend $400 of it on gifts instead of putting the gifts on his credit card, thus avoiding interest charges. He gradually replaces it in his savings account over the next two months. An economist would say this behavior is:
A. rational. B. irrational. C. utility minimizing. D. not observable.
The firm's demand curve for labor is
A. the demand curve for the good produced divided by the price of the good. B. the marginal physical product curve for labor divided by the price of the good. C. the marginal revenue product curve for labor. D. the marginal physical product curve for labor multiplied by the price of labor.