A Firm Uses Two Factors of Production

question 105

Multiple Choice

A firm uses two factors of production. Irrespective of how much of each factor is used, both factors always have positive marginal products which imply that:

• A) isoquants are relevant only in the long run.
• B) isoquants have negative slope.
• C) isoquants are convex.
• D) isoquants can become vertical or horizontal.
• E) none of the above

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Definitions:

Avoiding Incidents

Strategies or actions undertaken to prevent or minimize the occurrence of adverse events.

Compromised Coping

A reduced ability to deal with stressful situations, leading to ineffective management of life's demands.

Sleep ing Patient

An individual who is in a state of rest characterized by altered consciousness and minimal activity, engaging in the natural process of sleep.

Skilled Care Facility

A healthcare institution providing 24-hour services of skilled nursing or therapy staff to manage, observe, and evaluate care for patients.