Study the image given and answer the questions.

Assertion: A production function is defined for a given technology. 

Reasoning: It is the technological knowledge that determines the maximum levels of output that can be produced using different combinations of inputs.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

The correct answer is Option 1: Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Assertion: A production function is defined for a given technology. This statement is correct because the production function represents the relationship between inputs and output under a specific technological framework. Any improvement or change in technology would shift the production function.

Reasoning: It is the technological knowledge that determines the maximum levels of output that can be produced using different combinations of inputs. This statement is also correct because the level of output depends on the available technology. Advanced technology allows for higher productivity with the same inputs.

The reasoning directly supports the assertion. The fact that technology determines the maximum output levels is precisely why the production function is defined for a given technology.