When Variable Inputs Are Added to a Fixed Input

question 56

Multiple Choice

When variable inputs are added to a fixed input

• A)output increases.
• B)output can increase at an increasing rate.
• C)output can increase at a decreasing rate.
• D)all of these choices are possible.

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Definitions:

Substitute Resources

Alternative resources that can be used in place of another for the production of goods and services.

Resource

A source or supply from which benefit is produced, typically natural, human, or capital resources used to produce goods and services.

Minimum Wage

The lowest legally allowable pay per hour for workers, set by government policy.

Market Equilibrium

A market state where the supply of goods matches demand, leading to stable prices.