Use the Following Table to Answer the Question Below: the Amount

question 8

Multiple Choice

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
Diminishing marginal productivity

• A)occurs when the marginal product curve begins to slope downward.
• B)means that adding one more unit of the variable input will reduce total product.
• C)occurs eventually because each additional unit of the variable unit has,on average,fewer units of the fixed input with which to work.
• D)both a and c
• E)both b and c

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Definitions:

Normal Profit

The minimum profit necessary for a company to remain in business, equal to the opportunity cost of capital and entrepreneurial effort not invested elsewhere.

Entrepreneur's Talent

The unique set of skills, creativity, and determination that an entrepreneur brings to identifying opportunities and building a business.

Implicit Costs

Implicit costs refer to the opportunity costs of using resources that a company already owns, without any direct payment, for its own production purposes.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs required for the production of goods or services.