Table 2-3 Production Choices for Dina's Diner

question 223

Multiple Choice

Table 2-3
Production Choices for Dina's Diner

-Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 100 hot wings would appear

• A)along Dina's production possibilities frontier.
• B)inside Dina's production possibilities frontier.
• C)outside Dina's production possibilities frontier.
• D)at the vertical intercept of Dina's production possibilities frontier.

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Definitions:

Total Product

The total output or production achieved by a firm from a given amount of inputs.

Marginal Product

The increase in output that results from employing one more unit of a particular input, keeping all other inputs constant.

Diminishing Marginal Returns

is an economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, begins to decrease.

Variable Resource

A resource whose quantity can change in the short run to increase or decrease production levels.