The Change in Total Product Occurring When a Variable Input

question 212

Multiple Choice

The change in total product occurring when a variable input is increased and all other inputs are held constant is

• A) average total cost.
• B) marginal cost.
• C) average physical product.
• D) marginal physical product.

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Definitions:

Annual Rate

The interest rate stated on a yearly basis, often used in the context of savings accounts, loans, or investments to represent the yearly cost or return.

Return

The fiscal upwards or downwards movement in the value of an investment over a defined period, portrayed as a percentage of the investment’s beginning expense.

Investment

The allocation of resources, usually money, in order to gain profitable returns as interest, income, or appreciation in value.

Present Value

The present worth of a future amount of money, or sequence of cash flows, taking into account a certain return rate, employed in discounting to evaluate investment prospects.