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A production function specifies the relation between ____________ and the ___________ to...

Question:

A production function specifies the relation between {eq}____________ {/eq} and the {eq}___________ {/eq} to {eq}____________________ {/eq}.

a. technology; output; Real GDP

b. technology; the factor inputs; Real GDP

c. price; quantity; Real GDP

d. Real GDP; the factor inputs; the price level

Answer and Explanation:

The answer is b.

Two factors are crucial for output: the amount of input and the level of technology. A production function describes, given the level of technology, how much output could be produced from a given amount of inputs. Output could be increased by either increasing the amount of inputs or improving the level of technology.


Learn more about this topic:

Production Function in Economics: Definition, Formula & Example

from Introduction to Business: Homework Help Resource

Chapter 11 / Lesson 27
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