5 Questions
Production function indicates the functional relationship between the quantity of goods produced and factors of production at a given level of technology. Q= f (L, N, C, O) Where Q= Quantity of output, L= ______, N=Land, C= Capital, O= Organisation. Production means the creation or addition of utility. It is the process of converting inputs into outputs. It is the act of creating output, a good or service that has value and contributes to the utility of individuals. Production is carried out by producers or firms. This output can be consumed by the consumers, or used by other firms for further production. The production process and output directly result from productively utilizing the original inputs. In order to acquire inputs a firm has to pay for them, they are known as cost of production. Once the output is produced, then it is sold in the market to earn revenue. Variable Inputs : Fixed Inputs : Remains the same in a short period. At any l.
Labour
Q= f (L, N, C, O) where Q= Quantity of output, L= Labour, ______, C= Capital, O= Organisation
N=Land
The production process and output directly result from productively utilizing the original inputs. In order to acquire inputs a firm has to pay for them, they are known as cost of production. Once the output is produced, then it is sold in the market to earn revenue. Variable Inputs : Fixed Inputs : Remains the same in a short period. At any l.
Capital
Production means the creation or addition of utility. It is the process of converting inputs into outputs. It is the act of creating output, a good or service that has value and contributes to the utility of individuals. Production is carried out by producers or firms. This output can be consumed by the consumers, or used by other firms for further production.
Organisation
The production process and output directly result from productively utilizing the original inputs. In order to acquire inputs a firm has to pay for them, they are known as cost of production. Once the output is produced, then it is sold in the market to earn revenue. Variable Inputs : Fixed Inputs : Remains the same in a short period. At any l.
Quantity of output
Test your knowledge of macroeconomic concepts with this quiz on production functions. Explore the relationship between quantity of goods produced and factors of production, such as labor, land, capital, and organization. See how well you understand the process of converting inputs into outputs and the creation of utility.
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