Refer to the Following:
the Amount of Total Output Produced

question 43

Multiple Choice

Refer to the following:
The amount of total output produced from various combinations of labor and capital.

$$\begin{array}{l}     \text { Units of Capital }\\\begin{array} { c c c c c c } & & 1 & 2 & 3 & 4 \\\hline \text { Units } & 1 & 20 & 36 & 48 & 53 \\\text { of } & 2 & 38 & 68 & 88 & 94 \\\text { Iabor } & 3 & 53 & 94 & 122 & 133 \\& 4& 63 & 112 & 148 & 164 \\& 5 & 68 & 120 & 164 & 184\end{array}\end{array}$$
-Diminishing marginal productivity

• A) occurs when the marginal product curve begins to slope downward.
• B) means that adding one more unit of the variable input will reduce total product.
• C) occurs eventually because each additional unit of the variable unit has, on average, fewer units of the fixed input with which to work.
• D) both a and c
• E) both b and c

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Definitions:

Average Fixed Cost Curve

A graph that shows the fixed costs of production divided by the quantity of output produced, illustrating how these costs dilute over larger production volumes.

U-Shaped

A descriptive term often used in economics and statistics to describe a graph or curve that resembles the shape of the letter "U", indicating a particular kind of relationship or trend.

Positive Amount

A value that is greater than zero, indicating a quantity that adds to a total rather than subtracting from it.

Price

The financial charge expected, required, or dispensed as payment for a product.