Managerial Economicsintermediate
Match each production relationship with what it examines.
Answer
Factor-product - Relationship between an input factor and output, Factor-factor - Relationship or choice among input factors, Product-product - Relationship or choice among outputs, Multifactor-multiproduct - Multiple factors considered in relation to multiple products
Explanation
### The pairs
| Item | Matches | Why |
|---|---|---|
| Factor-product | Relationship between an input factor and output | This examines how a production factor relates to the resulting product. |
| Factor-factor | Relationship or choice among input factors | This concerns how factors relate to or can be combined with one another. |
| Product-product | Relationship or choice among outputs | This examines relationships between products a production unit may produce. |
| Multifactor-multiproduct | Multiple factors considered in relation to multiple products | This studies several inputs and several outputs together. |
### The concept
The four classifications differ by whether the analysis focuses on one input, several inputs, one output, or several outputs. They provide different frames for analyzing production decisions.
### Terms
- **Factor of production**: an input or resource used in producing output.
### Remember
Identify whether the relationship concerns inputs, outputs, or both.
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