If X₃ = T₄(x₄,d₄)= X₄ − 2d₄ and R₄(x₄,d₄)= 16d₄,the

question 21

Multiple Choice

If x₃ = t₄(x₄,d₄) = x₄ − 2d₄ and r₄(x₄,d₄) = 16d₄,the stage transformation function is

• A)t.
• B)x.
• C)r.
• D)d.

---

Definitions:

Labor

The work performed by humans that is used in the production of goods and services.

Diminishing Marginal Returns

An economic principle stating that as one factor of production increases while others remain constant, the incremental gains in output will eventually decrease.

Input

Resources such as labor, materials, and capital used in the production of goods and services.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.