Use the Table for the Question(s) Below

question 45

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:

-The average annual return on IBM from 1996 to 2005 is closest to:

• A) 29.9%
• B) 16.45%
• C) 18.2%
• D) 18.7%

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Definitions:

Total Product Curve

A graph that illustrates the total quantity of output produced by a firm as a function of the total quantity of a single input used, holding all other inputs constant.

Variable Input

Any production input that can be varied in the short term to increase or decrease output, such as labor or raw materials.

Output

The total amount of goods or services produced by a company or country.

Marginal Product Curve

A graphical representation showing how the additional output of a firm varies with the addition of one more unit of a variable input, holding all other inputs constant.