Econ 112 Take-Home Quiz 3 5. In the short run: A all inputs are fixed. B. all in

Question

Econ 112 Take-Home Quiz 3 5. In the short run: A all inputs are fixed. B. all inputs are variable C. some inputs are fixed and some inputs are variable. D. all costs are variable. 6. Diminishing marginal returns occur A each additional unit of a variable factor adds more to total output B. an additional variable factor adds less to total output than the C. the marginal product of a variable factor is increasing but at a D. total product decreases than the previous unit. previous unit. decreasing rate. 7. Which of the following cost concepts is correctly defined? B. ATC VC+ FC C. ATC-AVC + AFC D. TC=AVC+AFC Use the following to answer question 15: Table: Production Function for Soybeans Quantity of soy beans (bushels) 0 25 45 60 70 75 Quantity of labor (workers) 8. (Table: Production Function for Soybeans) The table shows a production function for soybeans. Assume that the fixed input,

Explanation / Answer

5. Option C. Some inputs are fixed and some inputs are variable.

Explanation: In the short-run, the firm cannot change capital i.e. its production capacity. However, it can change the no. of workers employed. So, some inputs are fixed and some inputs are variable in the short-run.

In the long-run, a firm can vary all inputs as the firm can change its production capacity in the long-run.

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