The Production Function Is Defined as _____

question 90

Multiple Choice

The production function is defined as _____

• A)a firm's total output.
• B)the increase in output that occurs when all resources are increased by the same proportion.
• C)the increase in output that occurs when an additional unit of a resource is added, holding all other resources constant.
• D)the amount of additional resources needed to increase output by one unit when all resources are increased by the same amount.
• E)The relationship between the amount of resources employed and total product.

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Definitions:

Ration Coupons

Physical or digital vouchers issued by governments or organizations to allow individuals to purchase a limited amount of scarce commodities, historically used during times of war or shortages.

Price Ceiling

Legislation or regulation that sets the maximum legal price a seller can charge for a product or service to prevent market prices from rising above a certain level.

Shortage

A situation in which the demand for a good or service exceeds its supply in a market.

Surplus

is an economic situation in which the quantity of a good supplied exceeds the quantity demanded at the current price, often leading to a decrease in prices.