What is a production function?[br][br][b][color=#165FFA]Question ...

[DyllonKazuo]

What is a production function?

Question 2

A perfectly competitive firm incurs a loss in the short run, if at the profit maximizing level of output:
 a. the marginal revenue curve lies below the marginal cost curve.
  b. the marginal revenue curve lies above the average revenue curve.
  c. the average cost curve lies below the average revenue curve.
  d. the average revenue curve lies below the average cost curve.
  e. the marginal revenue curve lies above the marginal cost curve.

[verrinzo]

Answer to Question 1

A firm combines various inputs to produce its output. The production function is the relationship between these inputs and the output produced by the firm. It shows the maximum output that can be produced for every combination of inputs used.

Answer to Question 2

d