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

---

Definitions:

Stereotypes

Oversimplified generalizations about groups of people that may not accurately reflect reality.

Social-Psychological Process

A mechanism through which social interactions and structures influence individuals' thoughts, feelings, and behaviors.

Psychological Processes

The functions of the mind that encompass all aspects of perceiving, thinking, remembering, and understanding, which influence behavior.

Attribution Theory

A social psychology theory that explains how individuals infer the causes of their own and others' behavior, attributing it to either internal dispositions or external situations.