Question

Which one of the following statement regarding Factor of Production is correct?

A It is the input that a firm uses in the production process. Correct Answer Incorrect Answer
B It is the output which is produced in the production process. Correct Answer Incorrect Answer
C It is the additional input that is required to achieve the maximum output. Correct Answer Incorrect Answer
D It is the ratio of the output to that of the input of the production process. Correct Answer Incorrect Answer

Solution

The inputs that a firm uses in the production process are called factors of production. In order to produce output, a firm may require any number of different inputs.
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