The Term "Ceteris Paribus" Means That

question 112

Multiple Choice

The term "ceteris paribus" means that:

• A)​everything is variable.
• B)​all variables except those specified are constant.
• C)​no one knows which variables will change and which will remain constant.
• D)​what is true for the individual is not necessarily true for the whole.

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Definitions:

MPP

Marginal Physical Product, which represents the additional output resulting from the use of one more unit of a variable input, holding other inputs constant.

Resource

Assets, materials, or inputs that are available to an individual, organization, or society to produce goods and services.

Output

The total amount of goods or services produced by a company, industry, or economy.

Perfect Competitor

A hypothetical market structure in which no individual firm has any market power, allowing for an ideal level of competition where prices reflect actual costs.