The technical relationship between the physical inputs and the physical outputs of a firm is

1. Analyze the question The question asks for the term that describes the technical relationship between physical inputs (land, labour, capital, entrepreneurship) and physical output (goods produced).

2. Explain the concept A production function shows how much output a firm can produce from given quantities of inputs, using the available technology. It is usually written as:

Q = f(L, K, N, E)

where Q is output, L is labour, K is capital, N is land and E is entrepreneurship.

3. Check each option

• A. Utility: the satisfaction a consumer gets from consuming a good or service. It is not about inputs and outputs.
• B. Cost: the monetary value of the inputs used. It is a money relationship, not a physical one.
• C. Demand: the quantity of a good consumers are willing and able to buy at a given price. It has nothing to do with production.
• D. Production function: the technical (physical) link between inputs and output. This matches the question.

4. Answer The correct answer is **D.

5. Exam tip Look for the key words in the question. "Technical" and "physical inputs to physical outputs" point to the production function. If the question says "money" or "monetary value of inputs," think cost instead.