The Additional Output Produced by Adding One More Unit of an Input

question 53

Multiple Choice

The additional output produced by adding one more unit of an input is the:

• A) marginal product.
• B) average product.
• C) total production.
• D) slope of the marginal product curve.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and economic forces are balanced, leading to no net inclination to change.

Constant-Cost Industry

An industry in which the costs of production (including input prices) remain constant regardless of changes in the industry's output level.

Long-Run Equilibrium

A situation in which, after all adjustments have been made, all firms in a perfectly competitive market earn zero economic profit and no firm has an incentive to change its output.

Market Price

The existing rate at which a product or service may be purchased or sold within a market environment.