Zamir Enjoys Working with Model Rockets

question 4

Multiple Choice

Zamir enjoys working with model rockets. His most recent project involved an extremely complex model that required several hours of assembly. Sternberg would probably say that Zamir's style is

• A) executive.
• B) external.
• C) oligarchic.
• D) judicial.

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Definitions:

AVC

Average Variable Cost, the variable cost per unit of output.

Law Of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if all other variables remain at a constant.

Marginal Output

The additional quantity of a product that is produced from using one more unit of an input, keeping other inputs constant.

Diminishing Returns

A principle stating that if one factor of production is increased while other factors are held constant, the incremental output or benefit gained will eventually decrease.