The production function shows

A) the incremental output gained by improving the production process.
B) the maximum output that can be produced from each possible quantity of inputs.
C) the technology used to produce output.
D) the total cost of producing a given quantity of output.


Ans: B) the maximum output that can be produced from each possible quantity of inputs.

Economics

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If there are four firms in a market and each has an equal market share, the Herfindahl-Hirschman Index (HHI) is ________.

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Economics