__________ Is the Amount of One Factor That Must Be

question 26

Multiple Choice

__________ is the amount of one factor that must be sacrificed in order to achieve more or less of another factor.

• A)Trade-off
• B)Synergy
• C)Barter limit
• D)Limiting quantity

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Definitions:

Extensive Range

A wide scope or variety of something, covering a broad spectrum.

Constant Returns to Scale

A situation in which increasing the scale of production inputs results in a proportional increase in the output.

Long-run Average Total Cost

The cost per unit of output incurred when all factors of production, including physical capital, are variable.

Minimum Efficient Scale

The smallest level of production at which a firm can achieve the lowest long-run average total costs.