Supply Elasticity

Supply Elasticity / Production Decisions

Multiple Choice

The law of diminishing returns basically states that ..

• ...more workers is always better

• ...you can hire an unlimited amount of people

• ...there must be a cut off to the amount of workers for a job

Multiple Choice

As a business owner, the amount of workers that you want for a job is determined by...

• marginal product

• total product

• labor input

• none of the above

Multiple Choice

If the total product went from 10 at 1 worker, to 40 at 2 workers, what is the marginal product at 2 workers?

• 20

• 30

• 40

• 50

Multiple Select

Which of the following would have "elastic" supply?

• plastic cups

• land

• shirt buttons

• oil

Multiple Choice

When the supply for a good is "perfectly inelastic," high demand could lead to...

• lower prices

• higher prices

• no effect on prices