If a Firm Uses Labor to Produce Output, the Firm's

question 69

Multiple Choice

If a firm uses labor to produce output, the firm's production function depicts the relationship between

• A)the number of workers and the quantity of output.
• B)marginal product and marginal cost.
• C)the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor.
• D)fixed inputs and variable inputs in the short run.

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Definitions:

Dollar Votes

A term used in economics to describe how consumers show their preferences and exert influence in the market by how they spend their money.

Dollar Votes

The concept that consumers "vote" for the products they prefer through the dollars they spend.

Consumer Sovereignty

The concept that consumers have the ultimate control over what goods and services are produced by choosing what to purchase with their money.

Economically Most Efficient

A situation or method that yields the maximum output without wasting resources.