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The Most Obvious and Important Kind of Resource Constraint Is

question 73

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The most obvious and important kind of resource constraint is a lack of materials.


Definitions:

Average Product

The yield generated for every unit of a production input, determined by dividing the overall output by the amount of the input used.

Labor

The human effort, whether physical or mental, that is used in the production of goods and services.

Law of Diminishing Returns

An economic principle stating that adding more of one factor of production, while keeping others constant, will at some point yield lower per-unit returns.

Marginal Product

The additional output produced as a result of utilizing one more unit of input, holding all other inputs constant.

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