A Fixed Input, X, and a Variable Input, Y, Are

question 140

Multiple Choice

A fixed input, X, and a variable input, Y, are used to produce good A. If the marginal physical product (MPP) of Y is constant, it follows that the __________________,  ceteris paribus.

• A)marginal cost curve is upward sloping.
• B)total fixed cost curve is vertical.
• C)total variable cost curve is downward sloping.
• D)marginal cost curve is horizontal.

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Definitions:

Payroll Tax Expense

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Inventory

The goods and materials a business holds for the purpose of resale or production.

Freight-in

The cost of transporting goods into a firm, usually considered part of the inventory cost.

Cost of Selling Goods

The total expense directly incurred from the production or purchase of items sold by a business.