When Some Capacity Constraints Are Binding, Although Others Are Nonbinding

question 16

Multiple Choice

When some capacity constraints are binding, although others are nonbinding:

• A) the shadow price for new capacity is positive.
• B) the shadow price for output is positive.
• C) the marginal revenue product for new capacity is positive.
• D) the marginal product of new capacity is positive.

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Definitions:

Erikson

Psychologist Erik H. Erikson developed a theory of psychological development that identifies eight stages from infancy to adulthood, each characterized by a central conflict.

Continuous Development

A perspective on human development which sees changes as gradual and incremental, without sudden shifts or distinct stages.

Discontinuous Development

The concept that development occurs in distinct stages that are qualitatively different from each other rather than as a smooth, continuous progression.

Nature

The inherent qualities or characteristics of a person or thing; frequently contrasted with nurture, or environmental influences.