Diminishing returns occurs in the short run because: A.There are variable inputs to production in the short run B.The marginal product of labor will decrease after some amount of labor is hired in the short run C.The average product of labor will decrease after some amount of labor is hired in the short run D.There are fixed inputs to production in the short run

Diminishing returns occurs in the short run because: A.There are variable inputs to production in the short run B.The marginal product of labor will decrease after some amount of labor is hired in the short run C.The average product of labor will decrease after some amount of labor is hired in the short run D.There are fixed inputs to production in the short run

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 10SQ

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Diminishing returns occurs in the short run because The average product of labor will decrease after some amount of labor is hired in the short run b. There are fixed inputs to production in the short run The marginal product of labor will decrease after some amount of labor is hired in the short run There are variable inputs to production in the short run
What is a production function? Response option group It is the production technology It is the relationship between inputs and the level of production It is the average product It is the marginal product
a software production firm, average product has started falling and total output indicated diminishing trend. The production manager Mr. Yahya called you and asked you to see the condition of marginal product. You analyzed the situation and reported that marginal product falling more than average product. Mr. Yahya got surprised. In your opinion which situation the firm is heading to?
The short run is a period of time in which: The quantities of some resources (inputs) are fixed. The amount of output is fixed. Prices and wages are fixed. O Nothing the firm does can be altered.
Which of the following describes the law of diminishing returns to labor? A. When one more worker got hired their marginal product was negative B. When one more worker got hired total product of the firm went down C. When one more worker got hired their marginal product was lower than the marginal product of the previous worker
If the marginal value of some variables is above the average value of the variable:*the marginal value must be rising.the marginal value must be falling.the average value must be rising.the average value must be falling. The fixed costs of a firm are costs that stay the same regardless of*the amount of output produced.the price of the fixed input.the amount of the fixed input employed.whether the firm is in the short-run or the long-run. In the short run, TVC*is positive when output is zero.increases with increasing output.decreases when the firm is experiencing diminishing returns.decreases when the firm is experiencing increasing returns. In the short-run, when output is zero*TC is zero.TFC is zero.TVC is zero.AFC is zero. The MC curve must be*rising when TC is rising.less than AFC when the average cost is rising.greater than ATC when the average curve is rising.falling when the ATC curve lies below the marginal curve.
3) The short run is a period of time in which A) nothing the firm does can be altered. B) the amount of output is fixed. C) prices and wages are fixed. D) the quantity of at least one factor of production is fixed.
The feature that distinguishes short-run from the long-run is the*length of time it takes to produce 1 unit.existence of fixed costs.amount of variable resources used to produce 1 unit.the amount of profit the firm can expect to earn. The short-run is*less than a year.when a firm is unable to change some of its inputs.when a firm is unable to change output.when a firm is unable to change its price. The production function tells the firm*which input combination has the lowest total cost.which input combination produces a given output at the lowest possible cost.the maximum output that can be produced from a given amount of inputs.which output is the most profitable. In the short run*all costs are variable.all inputs are fixedthere may be fixed and variable inputs.all production decisions must be made on a daily basis. The law of diminishing marginal returns says that as units of labor are added to the production of an output when all other inputs are fixed, eventually*total product…
What is the difference between production in the short run and production in the long run? Explain the shape of the long run cost curve in relation to short run cost curve?
If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal product of capital equals 7 tons of output and the cost of capital is $14 per unit, then A. The cost of labor must be $1/7 B. The cost of labor (wage rate) must be $2 C. The cost of labor must be $7 D. The cost of labor must be $14 as well
An isocost line is defined by a. Combinations of inputs required to earn a constant level of profit b. Combinations of inputs required to produce the same quantity of output c. Combinations of inputs required to incur constant cost d. Combinations of labour required to maintain a constant quantity of capital
The short run is a time period that is A) long enough to change the size of the firm's plant. B) too short to change the size of the firm's plant. C) too short to change the amount of ANY resource the firm employs. D) too short to change the amount of labor hired.