Industrial Machinery Is an Example of

question 68

Multiple Choice

Industrial machinery is an example of

• A)a factor of production that in the past was an output from the production process.
• B)technological knowledge.
• C)a production function.
• D)an item which always has the property called constant returns to scale.

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Definitions:

Variable Labor

Labour costs that vary directly with the level of production or output in a business.

Average Variable Cost

The cost per unit of output that varies with the level of production, excluding fixed costs.

Average Total Cost

The sum of average variable costs and average fixed costs (costs that do not change with the level of output) divided by the quantity of output, representing the total cost per unit of output.

Average Fixed Cost

Permanent production expenses, which don't fluctuate with output changes, divided by the output number.