What does a firm's production function show and how is it related to a total product curve?
What will be an ideal response?
A firm's production function is the relationship between the maximum output attainable and the quantities of both capital and labor. The total product curve shows the maximum output that a given quantity of labor can produce for a given quantity of capital.
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Currency in circulation is currency that meets all of the following criteria except for currency
A) outside the Treasury. B) outside the Federal Reserve. C) held as vault cash in banks. D) held by the non-bank public.
Constant cost industries: a. use large portions of the total supply of specialized resources
b. significantly increase the demand for inputs when expanding output, and as a result, input prices rise. c. do not use inputs in sufficient quantities that a change in industry output would affect the prices of the inputs. d. are those in which the cost curves of individual firms shift upwards as industry output expands.