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.

---

Definitions:

Profit

The financial gain obtained when the revenues generated from a business activity exceed the expenses, costs, and taxes needed to sustain the activity.

Revenue

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Expenses

The costs incurred in the process of generating revenue, including but not limited to rent, salaries, and utilities.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.