Assuming That All Other Factors of Production Are Held Constant

question 98

Multiple Choice

Assuming that all other factors of production are held constant, marginal product is the change in _____ output resulting from a one-unit change in _____.

• A) total; a variable input
• B) total; a fixed input
• C) total; total product
• D) per unit; a fixed input

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Definitions:

Total Purchase Costs

The aggregate amount of money spent on acquiring an asset, including the purchase price and all associated fees and expenses.

Commission Charges

Fees charged by brokers or agents for their service in facilitating a transaction, often a percentage of the sale value.

Total Cost

The complete amount of money spent on producing or acquiring a product or service, including all variable and fixed expenses.

Par Value

The face value of a bond or stock as stated by the issuing company.