For a Fixed Proportion Production Function,at the Vertex of Any

question 22

Multiple Choice

For a fixed proportion production function,at the vertex of any of the (L-shaped) isoquants the marginal productivity of either input is

• A)constant
• B)zero.
• C)negative.
• D)a value that cannot be determined.

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Definitions:

Sales Mix

The combination of different products or services that a company sells, typically analyzed to understand their relative contributions to overall sales.

Operating Loss

A situation where a company's operating expenses exceed its gross profits, indicating a negative performance.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Book Value

The net value of an asset or company calculated as total assets minus intangible assets and liabilities.