Question

Which of the following is not an assumption associated with the definition of a production function?

A. All units of the inputs are homogeneous.
B. Technology remains constant.
C. The function shows the maximum level of output possible with a given combination of inputs.
D. Both inputs and outputs are measured in monetary units.

Answer 1

Answer: Both inputs and outputs are measured in monetary units.

Explanation: Production function according to Wikipedia is defined as the technological relation between quantities of physical inputs and quantities of output of goods.