The Rate at Which One Input Can Be Exchanged for Another

question 7

Multiple Choice

The rate at which one input can be exchanged for another input without altering the level of output is called the:

• A)marginal product curve.
• B)average product curve.
• C)marginal rate of technical substitution.
• D)law of diminishing marginal productivity.

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Definitions:

JIT Policy

Just-In-Time policy, a strategy where materials are produced or acquired only as needed for use in the production process, reducing inventory levels.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated through a physical count or accounting methods.

Unit Sales

The quantity of items that have been sold within a particular timeframe.

JIT Policy

Just-In-Time policy, a strategy that aims to improve a business's return on investment by reducing in-process inventory and related carrying costs.