A farmer starts using an improved method of cultivation. With the same land and the same hours of labour, the maximum output of wheat rises. In terms of the production function, this is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → a new production function, since a production function is defined for a given technology
The inputs stay the same, but the method of work improves. A production function holds for one given technology. When technology improves, the maximum output from the same inputs rises, and we have a new production function.
Option (1) increasing returns to scale, since output rises with the same inputs — Incorrect. Returns to scale need all inputs raised in the same proportion. Here the inputs did not change.
Option (2) a movement along the same production function, since the inputs have not changed — Incorrect. On the same production function, the same inputs give the same maximum output. Here it rose.
Option (3) a new production function, since a production function is defined for a given technology — Correct. Better technology gives more output from the same inputs.
Option (4) the law of variable proportions, since output changes with the same land — Incorrect. That law is about changing one input while another stays fixed. No input changed here.
NCERT (2026-27): “3.1 Production Function … A production function is defined for a given technology. It is the technological knowledge that determines the maximum levels of output that can be produced using different combinations of inputs. If the technology improves, the maximum levels of output obtainable for different input combinations increase. We then have a new production function.” |