In General, the Cost of an Input _____ When a Firm

question 116

Multiple Choice

In general, the cost of an input _____ when a firm has reached the point of diminishing marginal product.

• A)decreases
• B)stays the same
• C)increases
• D)is minimized

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Definitions:

Good Increases

A term that is not well-defined in an economic context; possibly refers to growth in the quality or quantity of goods.

Labor

Human effort used in production which can include physical and mental contribution.

Price-Taking Farmer

An agricultural producer who has no control over the prices of the products they sell and must accept the prevailing market prices.

Corn Output

The total amount of corn produced, often considered in agricultural and economic studies regarding productivity and market supply.