Question

What is production technology and how does it differ from a production​ function?

A. It is a function showing the highest output that a firm can produce for every specified combination of​ inputs, while the production function shows the minimum output that can be produced.

B. It is a function showing the minimum output that a firm can produce for every specified combination of inputs and is the same as the production function.

C. It is a function showing the highest output that a firm can produce for every specified combination of inputs and is the same as a production function.

D. It is a function showing the minimum output that a firm can produce for every specified combination of​ inputs, while the production function shows the maximum output that can be produced.

Answer 1

The answer is option C, i.e. It is a function showing the highest output that a firm can produce for every specified combination of inputs and is the same as production function.

Explanation:

Production technology and production function can be stated as being the same as the ultimate goals in both cases are the same. Both of the above terms aim at gaining more output in an efficient way after the utilization of the same or minimum amount of inputs used to produce that particular output. Both of them aim at efficiency and productivity.