When at Least One Factor of Production Is Fixed, Firms

question 92

Multiple Choice

When at least one factor of production is fixed, firms require more and more workers to produce each additional unit of output. This describes

• A) increasing marginal returns.
• B) diminishing marginal returns.
• C) learning by doing.
• D) short-run adjustments.

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Definitions:

Adaptable

Being able to adjust oneself readily to different conditions.

Complexes

In psychoanalytic theory, a core pattern of emotions, memories, perceptions, and wishes in the personal unconscious organized around a common theme.

Collective Unconscious

A concept in Jungian psychology referring to the part of the unconscious mind which is derived from ancestral memory and experience and is common to all humankind.

Conscious

The state of being aware of and able to think about one's own existence, sensations, thoughts, and surroundings.