Correct option is C
The correct answer is (c) Output produced by the firm.
The production function of a firm describes the relationship between the inputs (such as labor, capital, and raw materials) used in production and the output produced by the firm.
It shows how different combinations of inputs affect the quantity of output, assuming technology and other factors are constant.
Information Booster:
The production function is typically expressed as Q = f(L, K, N), where Q is output, L is labor, K is capital, and N is land or other inputs.
The production function helps firms understand the efficiency of input utilization and plan for optimizing resource use to increase output.
Additional Information:
| Term | Explanation |
|---|---|
| Input | Resources like labor, capital, raw materials, etc., used in the production process |
| Output | The total amount of goods or services produced by the firm using its inputs |
| Production Function | A mathematical relationship that shows how input quantities relate to output |
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