Use the Following to Answer Questions

question 18

Multiple Choice

Use the following to answer questions :
Figure 7A-1
-Suppose the producer in Figure 7A-1 wants to increase production of good y from 100 to 200 in the short run.Assume MP_L/MP_K and input prices remain constant.If point A represents the best possible combination of inputs for 100 units of output, which point represents the best input combination in the short run for 200 units of output?

• A)Point A
• B)Point B
• C)Point C
• D)Point D
• E)Point E

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Definitions:

Independent Variable

The variable in an experimental setup that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

In an experiment, the variable that is being tested and measured; it is 'dependent' on the independent variable.

Control Variable

A factor that is kept constant to prevent its influence on the outcome of an experiment, ensuring that the experiment measures what it intends to.

Hypothetical Variable

A concept or variable that is not directly observable but is inferred from observed phenomena and used in theory to explain or predict behavior.