Economics: Chapter 8 production
Which of the following is a product that generally is fixed in short-run?
A factory building
Characteristic of Long-Run...
All inputs can be varied
Which of the following is an example of long-run adjustment?
Walmart builds another super center
Diminishing marginal product of labor occurs when adding another unit of labor...
changes output by an amount smaller than the output added by the previous unit of labor.
The short run is the time period when...
during which the quantities of some resources are fixed.
When the slope of the total product curve is steep, the marginal product is,
high
Which of the following is an implicit cost of production?
rent that could have been earned on a building owned and used by the firm
The law of diminishing marginal returns states...
that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline.
The marginal production of labor is defined as...
the additional output that results when one more worker is hired, holding all other resources constant.
Which of the following is an implicit cost of production?
the loss in the value of capital equipment due to wear and tear
The production function shows...
the maximum output that can be produced from each possible quantity of inputs.
In the short run, marginal product of labor increases at first and then falls because...
there are fewer opportunities for division of labor and specialization when fewer workers are hired.
