The Amount of Capacity an Entity Has Available to Increase

question 19

Short Answer

The amount of capacity an entity has available to increase its output is known as either ______________ or _____________ capacity.

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Definitions:

Marginal Product

The extra output or benefit produced by using one more unit of a given input, such as labor or capital.

Labor

The effort by humans to produce goods or services in the economy. It is often considered one of the key factors of production alongside land and capital.

Capital

Refers to financial resources, assets, or funds a company or individual possesses for pursuing investment opportunities or operational activities.

Isoquants

Isoquants are curves representing combinations of inputs that yield the same level of output in production theory.