Question

1. A production function describes how firms

a. ?combine capital, labor and other inputs to create products.

b. determine the profit-maximizing quantity of output.

c. describe demand conditions in their markets.

2. Which of the folloiwng statements about natural resources is true?

a. the natural resources available to us are fixed and cannot be expected

b. natural resources can be used by people to produce goods and services

c. natural resources are made by people out of natural materials

3. Marginal product refers to:

a. The quantity of output produced from a given amount of labor, holding other inputs constant.

b. The cost of producing a given quantity of output.

c. The quantity of additional output produced when the firm adds additional workers to the production process.

Answer 1

a) "A"

A production function describes how firms combine capital, labor, and other inputs to create products.

b) A natural resource is the resources which occur naturally and can be exploited for economic gains. The answer is "B".

c) A marginal product can be defined as a change in the final product as a result of the change in the input of the goods. "C", The quantity of additional output produced when the firms add additional workers to the production process.