Chapter 4: Production Function Very Short Questions and Answers
Q1: Define production.
Answer: Addition to utility should be regarded as production which brings about an addition in the value of goods.
Q2: Define Average Product.
Answer: Average product refers to output per unit of a variable input. Mathematically, it is Total Product divided by the amount of variable factor.
Q3: Define production function.
Answer: Production function may be defined as the technological relationship between physical inputs and the maximum producible output.
Q4: Write the equation for the production function.
Answer: Qx = f(L,K).
Q5: Define short period.
Answer: the Short period is the period of time in which a firm can change only some factors of production (say labour)