A Production Function Is a Relationship Between Inputs And

question 113

Multiple Choice

A production function is a relationship between inputs and:

• A) revenue
• B) costs
• C) profit
• D) quantity of output

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Definitions:

Marginal Utility

The additional satisfaction or benefit received by a consumer from consuming one more unit of a good or service.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service versus the total amount they actually pay.

Marginal Utility

The increased gratification or value a shopper obtains by buying one more of a certain item or service.