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.

---

Definitions:

Firms

Business entities that produce goods or services with the aim of making a profit.

Complements

Goods or services that are used together, where the consumption or use of one increases the value or demand for the other.

French Fries

Thin strips of deep-fried potatoes, commonly served as a side dish or snack.

Hamburgers

A popular food item consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bun, often served with condiments and toppings.