When Some Factors of Production Are Fixed,in Order to Increase

question 106

Multiple Choice

When some factors of production are fixed,in order to increase production by equal amounts,a firm would need to add successively:

• A)smaller and smaller quantities of the variable factor.
• B)constant quantities of the variable factor.
• C)larger and larger quantities of the variable factor.
• D)larger and larger quantities of the fixed factors.

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Definitions:

Midpoint Formula

A mathematical formula used to calculate the average of two points in a coordinate system, often used in economics to find the elasticity of demand or supply between two points.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price.

Hamburger

A hamburger is a popular food item consisting of a cooked patty of ground meat, usually beef, placed inside a sliced bread roll or bun.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the goods' sensitivity to price changes.