The cost function describes the ____________ of producing each level of output given prices of factors of production and technology.

least cost

The correct answer is Option 1: Least cost

NCERT :"In order to produce output, the firm needs to employ inputs. But a given level of output, typically, can be produced in many ways. There can be more than one input combinations with which a firm can produce a desired level of output. The question is which input combination will the firm choose? With the input prices given, it will choose that combination of inputs which is least expensive. So,for every level of output, the firm chooses the least cost input combination. Thus the cost function describes the least cost of producing each level of output given prices of factors of production and technology"