Figure 2-3 -Refer to Figure 2-3.Which of the Following Is an Activity

question 82

Multiple Choice

Figure 2-3
-Refer to Figure 2-3.Which of the following is an activity undertaken by the actors in rectangle 2?

• A)produce and sell goods and services
• B)hire and use factors of production
• C)own and sell factors of production
• D)exchange goods and services between firms and households

---

Definitions:

Marginal Product

The increase in output that results from employing one more unit of a particular input, holding all other inputs constant.

Total Product

The total quantity of output produced by a firm from a given quantity of inputs during a certain period of time.

Workers

Individuals engaged in some form of employment or labor, contributing their skills or effort in exchange for compensation.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while keeping other inputs constant.