Production That Uses a Relatively High Level of Capital Per

question 228

Multiple Choice

Production that uses a relatively high level of capital per worker is called

• A)labor abundant.
• B)capital intensive.
• C)labor intensive.
• D)capital abundant.
• E)labor deepened.

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Definitions:

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues, providing a measure of the true economic performance of a venture.

Purely Competitive Market

A market structure characterized by a large number of small firms selling identical products, with no single firm able to influence market prices.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales, such as rent, salaries, or loan payments.

Profit-Maximizing Output

The level of production at which a firm achieves the maximum possible profit, where marginal cost equals marginal revenue.