Production Function in Economics

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Questions and Answers

What is the production function defined as?

A factor of production
A technological relationship between inputs and capital
A relationship between output and inputs at a given period of time (correct)
A law of diminishing returns

What is the general form of the production function?

Q = f (L, K, E, P)
Q = f (L, K, E, T)
Q = f (L, K, E)
Q = f (Land, Labour, Capital, Entrepreneur) (correct)

What is the short-run production function based on?

Law of diminishing returns (correct)
Law of opportunity cost
Law of supply and demand
Law of increasing returns

What is the main difference between the short-run and long-run production functions?

At least one of the factors of production is fixed in the short-run (D) Signup and view all the answers

What is the role of entrepreneur in the production function in Economics?

It is infused into capital (B) Signup and view all the answers

What is the symbolically represented short-run production function?

Q = f (L, K) (C) Signup and view all the answers

Study Notes

Production Function

The production function represents a technological relationship between output and inputs at a given point in time.
The production function can be expressed mathematically as: Q = f (Land, Labour, Capital, Entrepreneur)
In Economics, the production function typically excludes entrepreneur, which is instead incorporated into capital.

Two-Factor Inputs

There are two primary factor inputs that determine output: Labour (L) and Capital (K)
The two-factor production function can be expressed as: Q = f (L, K)

Short-Run Production Function

The short-run production function is a period of time where at least one factor of production is fixed, while others vary with the level of output.
The short-run production function is based on the assumption of the law of diminishing returns.
The short-run production function can be expressed symbolically as: Q = f (L, K)
In this context, L represents labor (variable input), and K represents capital (fixed input).

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Description

This quiz is about the production function, a technological relationship between output and inputs in economics. It covers the factors of production and how they determine output.