The Equipment and Structures Available to Produce Goods and Services

question 97

Multiple Choice

The equipment and structures available to produce goods and services are called

• A)physical capital.
• B)human capital.
• C)the production function.
• D)technology.

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Definitions:

Long Run Cost Curve

A graphical representation that shows the minimum cost at which any given level of output can be produced in the long term, once all inputs are variable.

Expansion Path

A line that shows the combination of inputs that a firm will use to maximize output for any given level of total cost.

Isoquants

A curve representing all the combinations of factors of production that yield the same level of output.

Isocost Line

A graphical representation in economic theory showing all combinations of inputs which have the same total cost.