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193. The change in total output resulting from a 1-unit increase in the quantity

ID: 1251632 • Letter: 1

Question

193. The change in total output resulting from a 1-unit increase in the quantity of a factor of production used, holding the quantities of all other factors of production constant, is:
A) average cost.
B) average product.
C) marginal cost.
D) marginal product
207. Variable costs include:
A) the cost of raw materials.
B) the salaries of top management.
C) rent on leased buildings.
D) all of the above.

213. A firm becomes more capital-intensive when it:
A) reduces the ratio of output to capital.
B) increases the ratio of output to labor.
C) reduces the ratio of capital to labor.
D) increases the ratio of capital to labor.

214. A firm becomes more labor-intensive when it:
A) reduces the ratio of output to capital.
B) increases the ratio of output to labor.
C) reduces the ratio of capital to labor.
D) increases the ratio of capital to labor.

Explanation / Answer

193. The change in total output resulting from a 1-unit increase in the quantity of a factor of production used, holding the quantities of all other factors of production constant, is:
A) average cost.
B) average product.
C) marginal cost.
D) marginal product


207. Variable costs include:
A) the cost of raw materials.
B) the salaries of top management.
C) rent on leased buildings.
D) all of the above.

213. A firm becomes more capital-intensive when it:
A) reduces the ratio of output to capital.
B) increases the ratio of output to labor.
C) reduces the ratio of capital to labor.
D) increases the ratio of capital to labor.

214. A firm becomes more labor-intensive when it:
A) reduces the ratio of output to capital.
B) increases the ratio of output to labor.
C) reduces the ratio of capital to labor.
D) increases the ratio of capital to labor.

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