Study the image given and answer the questions.

Which of the following statement is NOT correct in respect of the 'Production Function'?

None of the above

The correct answer is Option 4: None of the above

Explanation:

All the given statements about the production function are correct.

1. It is a relationship between inputs used and output produced by the firm. This is correct because the production function describes how inputs like labor and capital are converted into output.

2. For various quantities of inputs used, it gives the maximum quantity of output that can be produced. This is correct because the production function represents the most efficient production level for given inputs.

3. A production function deals only with the efficient use of inputs. This is also correct because the production function assumes that inputs are used in the best possible way to achieve maximum output. Efficiency implies that it is not possible to get any more output from the same level of inputs