If a Firm Experiences Constant Returns to the Variable Input

question 13

Multiple Choice

If a firm experiences constant returns to the variable input in the short run:

• A)marginal product will be greater than average variable product, but the two will become more equal as output increases.
• B)marginal product will be less than average variable product, but the two will become more equal as output increases.
• C)marginal product will be greater than average variable product, and the difference between the two will become larger as output increases.
• D)marginal product and average variable product will be equal over the range of output in question.

---

Definitions:

Post-closing Trial Balance

A list of all permanent accounts and their balances after closing entries are made, used to check the balance and prepare for the new accounting period.

Proper Form

Compliance with established rules and guidelines, ensuring correctness in structure or procedure.

Closing

The process at the end of an accounting period where all financial statements are finalized and all temporary accounts are closed to prepare for the next accounting period.

Post-closing Trial Balance

A list of all accounts and their balances after closing entries are made, serving as a check to ensure that debits equal credits and that the ledger is in balance for the new accounting period.