Reference no: EM13316354

Question 3 of 10 10.0 Points For a restaurant:

A. labor and food would be variable factors of production.

B. a building would be a fixed factor of production in the short run.

C. fire insurance on a building would be a fixed factor of production.

D. A and B are correct.

Question 4 of 10 10.0 Points Diminishing marginal returns means that:

A. each additional unit of an input used will decrease output.

B. each additional unit of an input used will increase output, but by smaller and smaller amounts.

C. each additional unit of an input used will increase output by larger and larger amounts.

D. the firm is maximizing profit.

Question 7 of 10 10.0 Points In the long run:

A. all inputs are fixed.

B. inputs are neither variable nor fixed.

C. at least one input is variable and one input is fixed.

D. all inputs are variable.

Question 9 of 10 10.0 Points Given constant quantities of all other factors of production, when additional units of a variable factor of production add less and less to total output, then the firm is experiencing:

A. constant marginal returns.

B. increasing marginal returns.

C. diminishing marginal returns.

D. negative marginal returns.

Question 10 of 10 10.0 Points The sum of fixed and variable costs is:

A. total cost.

B. marginal cost.

C. variable cost.

D. average cost.