Assume a Given Amount of Output Can Be Produced by Several

question 130

Multiple Choice

Assume a given amount of output can be produced by several small plants or one large plant with identical minimum per-unit costs.This long-run situation reflects the existence of

• A)Economies of scale.
• B)Diseconomies of scale.
• C)Constant returns to scale.
• D)Diminishing returns.

Understand the ethical approaches and principles in community health nursing.

Identify effective methods for community health assessment and data collection.

Recognize the role of the community as the client in community health nursing.

Evaluate the success and impact of community health interventions.

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Definitions:

MRP = MRC Rule

The principle that to maximize profit (or minimize losses), a firm should employ the quantity of a resource at which its marginal revenue product (MRP) is equal to its marginal resource cost (MRC), the latter being the wage rate in a purely competitive labor market.

Profit-maximizing Firm

A company that adjusts its production and sales levels to achieve the highest possible profit based on its cost structure and market price.

MRP = MRC

An equality suggesting that the marginal revenue product (additional revenue from one more unit of an input) equals the marginal resource cost (cost of acquiring one additional unit of the input).

Resource Price

The cost associated with acquiring resources needed for production, such as labor, land, and capital.