When the Capital (A Fixed Input)changes

question 44

Multiple Choice

When the capital (a fixed input) changes

• A)short-run marginal costs rise.
• B)short-run average total costs fall but do not shift.
• C)labor inputs decline.
• D)the short-run average total cost curve shifts.

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Definitions:

Total Assets

The sum of all owned resources (current and non-current assets) that a company possesses, which can be found on its balance sheet.

Assets Turnover

A financial ratio that measures the efficiency with which a company uses its assets to generate sales.

Sales

The activities involved in selling products or services to customers, encompassing strategies and processes for identifying customer needs, closing deals, and after-sales support.

Inventories

Quantities of goods or materials on hand or in process of manufacture, storage, or transport.