Which of the following statements is correct? a. Average product of labour is the average quality of the goods produced by the workers. b. Factors of production are the factories i... Which of the following statements is correct? a. Average product of labour is the average quality of the goods produced by the workers. b. Factors of production are the factories in which the goods are produced. c. A production function describes the amount of output that will result for different combinations of inputs. d. Diminishing average product of labour refers to the diminishing quality of goods produced.
Understand the Problem
The question asks which of the provided statements about economic concepts related to labor, factors of production, and production functions is correct.
Answer
A production function describes the amount of output that will result for different combinations of inputs.
The final answer is c. A production function describes the amount of output that will result for different combinations of inputs.
Answer for screen readers
The final answer is c. A production function describes the amount of output that will result for different combinations of inputs.
More Information
The production function is a fundamental concept in economics that demonstrates how different combinations of inputs such as labor and capital produce various levels of output. It does not refer to the quality of goods.
Tips
A common mistake is confusing the average product of labor with the quality of goods. The average product is about the quantity of goods produced per labor unit.
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