Scientists Have Discovered a New Medical Treatment but Before They

question 65

Multiple Choice

Scientists have discovered a new medical treatment but before they can market it, physicians and patients must be aware of its existence. In other words, its manufacturer must create________ demand.

• A)selective
• B)generic
• C)primary
• D)derived

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Definitions:

Marginal Product

The increase in output that results from a one-unit increase in the quantity of a single input, holding the quantities of all other inputs fixed.

Average Product

It is the output that is produced, on average, by each unit of input in the production process, like labor or machinery.

Production Function

A mathematical relationship that describes how inputs are transformed into outputs in the production process, illustrating the maximum output achievable from a given set of inputs.

Marginal Product

Marginal product is the additional output a firm gains from employing one more unit of input, holding all other inputs constant.