Production and cost 2 April 12

One of the roles of a production manager is to induce workers to work hard by giving them

• Incentives

• food

• clothing

• vacation

The value of an output produced by the last unit of input

• marginal product

• marginal assets

• marginal demand

• marginal supply

A curve that shows various input combinations that yield the same total output

• Isoquant

• Isotopes

• Isoceles

• prototype

The rate at which a producer can substitute between two inputs and maintain the same amount of output

• marginal rate of technical substitution

• marginal rate of return

• marginal rate of change

• marginal rate of evaluation

As less of one input is used, increasing amount of another input is employed to produce the same level of output

• Diminishing MRTS

• Diminishing return

• Diminishing asset

• Diminishing option

A line that represents the combination of inputs that will cost the producer the same amount of money

• isocost line

• budget line

• indifference line

• elasticty line

To minimize the cost of the output, the firm should use less of an input and more of the other input when the input price

• increases

• declines

• stay the same

• at zero

The sum of fixed and variable costs

• total cost

• payables

• receivables

• service cost

The cost of producing an additional unit of output

• marginal cost

• marginal utility

• marginal substitution

• marginal rate

Cost that is lost forever once paid

• sunk cost

• marginal cost

• total cost

• fixed cost