Author Question: The term Production Function refers to the A) use of machinery and equipment in production. B) ... (Read 167 times)

vicky · **on:** Jul 1, 2018

The term Production Function refers to the

A) use of machinery and equipment in production.
B) relationship between costs and output.
C) relationship between inputs and output.
D) role of labor unions.

Question 2

A lawyer running his own business earns 18,000 in revenue monthly. He pays 8,000 as explicit costs including staff salary and utilities. He owns the office space so no rent is paid..

The lawyer could work for other legal firms and earn 10,000 per month. His business profit is ________ and his economic profit is ________. A) 10,000, 10,000
B) 28,000, 10,000
C) 10,000, 0
D) 8,000, 0