If a Variable Input Is Added to Some Fixed Input

question 387

Multiple Choice

If a variable input is added to some fixed input, beyond some point the resulting extra output will decline. This statement describes

• A)economies and diseconomies of scale.
• B)X-inefficiency.
• C)the law of diminishing returns.
• D)the law of diminishing marginal utility.

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Definitions:

Utilization

The ratio of the time that a resource is actually used to the time it is available for use, often measured to assess efficiency in operations.

μ

A symbol often used to represent the mean or average value of a set of numbers in statistics.

Average Waiting Time

The average time that a customer or item spends waiting in a queue before being served.