Question

Question 1.
In production function, production is a
function of
(a) Price
(D) Factors of Production
(c) Total Expenditure
(d) None of these​

Answer 1

In production function, production is a function of (D) Factors of Production

Factors of production:

"The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services"

Four factors of production:

• Land -  land includes farming and the agricultural cultivation. It includes all the resourses obtained from land. These resources aids as the raw material for production.
• Labor - labour includes the efforts and work put in by the people to produce goods and services. Any person who has been paid for his/her work shall be considered to be contributing a part of labour.
• Capital - capital varies from the type of work to the type of worker doing the work. Interest is the income of the capital resource owners.
• Entrepreneurship -  entrepreneur earns profit by combining all the factors of production such as the land, labour and capital. Most of the innovations in new market strategies, buying and selling of different market goods are brought by the entrepreneurs.

But sadly the available resources such as goods and services are scarce since their production factors have become lesser. This leads to the production of only selective goods and services.

Answer 2

In the production function, production is a function of factors of production. (Option b)

• The production function showcases a relationship between all the factors of production and the output obtained.
• It includes factors like labour, capital and presents the direct relation of these factors with the amount of output.
• The function can be written as a function of inputs used to develop outputs and helps in determining the usage of factors to maximize the production levels.