Which of the following are correct statements regarding the production function?
(A) The production function shows the relationship between the quantity of inputs and the quantity of outputs.
(B) The law of diminishing returns states that after a certain point, adding more of one input while holding others constant leads to a decrease in the marginal product of that input.
(C) In the short run, all factors of production are variable.
(D) The production function is always linear.
(E) The production function helps in understanding the output produced for a given set of inputs.
Choose the correct answer from the options given below:
1
(A), (B), and (E) only
2
(B), (C), and (D) only
3
(A), (C), and (D) only
4
(A), (B), and (D) only