The average product of a variable input is calculated as:
A) total product divided by total output.
B) the change in total product divided by the change in the variable input.
C) total product divided by the change in the variable input.
D) total product divided by the total quantity of the variable input.
D
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Suppose there are 5 million unemployed workers seeking jobs. After a period of time, 1 million of them become discouraged over their job prospects and cease to look for work. As a result of this, all else equal, the official unemployment rate would
A. be unchanged. B. increase in the short run but eventually decline. C. increase. D. decline.
Ashley recently began running her husband's lumber mill. Last month she took in $5,000 in sales revenue and paid $3,400 in out-of-pocket costs. Did the lumberyard make an economic profit last month?
a. Definitely not b. Yes. After considering non-zero explicit and implicit costs, it is clear that her profit is exactly equal to $1,600. c. Without knowing the magnitude of implicit costs, it is not possible to state whether the lumberyard earned an economic profit last month. d. Yes, after factoring implicit costs, it is clear that her profit will exceed $1,600.
The opportunity cost of going to a movie is
a. the price of the movie b. number of hours you spend watching the movie c. expected gains you experience by watching the movie d. the next best alternative that must be sacrificed in order to go to the movie e. expected gains minus the expected cost of the movie
Taken collectively, people in nations that engage in international trade are not likely to:
A) consume more than they were able to consume in the absence of trade. B) increase their standards of living. C) gain from lower opportunity costs of production. D) be made worse off.