In the Short Run, at Least One Factor of Production

question 39

Multiple Choice

In the short run, at least one factor of production is fixed. This implies that beyond some level of output a firm will

• A) "learn by doing."
• B) experience diminishing marginal returns.
• C) experience increasing marginal returns.
• D) have a U-shaped long-run average cost curve.

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Definitions:

Phytoplankton

Microscopic plant-like organisms that float in water bodies; they are the primary producers in aquatic ecosystems.

Radioactive Isotope

An isotope of an element that has an unstable nucleus and emits radiation during its decay to a stable form.

Greenhouse Effect

The process by which radiation from a planet's atmosphere warms the planet's surface more than it would without this atmosphere, largely due to greenhouse gases.