With One Input Fixed,a Firm Will Find That as It

question 293

Multiple Choice

With one input fixed,a firm will find that as it attempts to produce more,the total product curve increases at a decreasing rate and its marginal product curve is:

• A)downward sloping.
• B)upward sloping.
• C)constant and horizontal at the marginal product axis.
• D)constant and vertical at the quantity axis.

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Definitions:

Spending Variance

The difference between the actual amount of an expense and the budgeted or planned amount.

Static Planning Budget

A budget based on a fixed level of activity and not adjusted for actual activity levels.

Flexible Budget

A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.

Revenue Variance

The difference between the actual revenue earned by a business and its expected (or budgeted) revenue, which can be favorable or unfavorable.