Question

4) Use the following two statements to answer this question:
PRODUCTION TRUE - THE PROD FALSE

I. TRUE
Production functions describe what is technically feasible when the firm operates efficiently.

II. FALSE
The production function shows the least cost method of producing a given level of output

Answer 1

Answer: The answer is True, production functions describe what is technically feasible when firm operates efficiently

Explanation:

Production function is the relationship between input and output per unit of time in production. The two most important input in production is the capital and labour. The production of goods and services depend on the technique of production of the output. In the sense that the more efficient is the technique of production used in the process of producing an output, then the output will be greater and vice versa. It can be expressed as X = f ( K, L) where X = output ,K = capital ,L = labour