If a Firm Uses a Fixed- Proportions Production Technology to Produce

question 6

Multiple Choice

If a firm uses a fixed- proportions production technology to produce its final output:

• A)the AP of the variable factor is constant.
• B)the cost curves are obtained in a similar fashion with the non- fixed- proportion technologies.
• C)it will always employ the same amount of the variable factor.
• D)the law of diminishing marginal productivity does not apply.

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