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All Things Constant, a Decrease in Bus, Train, and Airplane

question 365

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All things constant, a decrease in bus, train, and airplane fares will


Definitions:

Total Product

The total output or quantity of goods produced by a firm or economy at a given level of input.

Diminishing Returns

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

Labor

The human effort, physical or mental, used in the production of goods and services.

Marginal Product

Marginal Product is the additional output resulting from the use of one more unit of a production input, holding all other inputs constant.

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