Refer to the Information Provided in Table 22

question 114

Multiple Choice

Refer to the information provided in Table 22.6 below to answer the question(s) that follow.
Table 22.6
-Refer to Table 22.6. If 2014 is the base year, the price index in 2015 is

• A) 76.8.
• B) 81.9.
• C) 119.1.
• D) 123.2.

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Definitions:

Diminishing Returns

An economic principle stating that adding an additional factor of production results in smaller increases in output after a certain point.

Marginal Output

The additional quantity of output that is produced by using one more unit of a given input.

Negative Returns

Occurs when a company or investment loses more money than it earns or when costs exceed revenues.

MC Curve

The MC Curve, or Marginal Cost Curve, represents the change in total cost that arises when the quantity produced is incremented by one unit. It is crucial in determining the optimum production level.