Quiz: The Theory of Production

What is the production function?

• The total output or production by a firm
• The extra output due to the addition of one more unit of input
• A graphic portrayal showing how a change in the amount of a single variable input affects output
• The phases of production that consist of increasing, decreasing, and negative returns

What is total product?

• The total output or production by a firm
• The extra output due to the addition of one more unit of input
• A graphic portrayal showing how a change in the amount of a single variable input affects output
• The phases of production that consist of increasing, decreasing, and negative returns

What is marginal product?

• The total output or production by a firm
• The extra output due to the addition of one more unit of input
• A graphic portrayal showing how a change in the amount of a single variable input affects output
• The phases of production that consist of increasing, decreasing, and negative returns

What are the stages of production?

• The total output or production by a firm
• The extra output due to the addition of one more unit of input
• A graphic portrayal showing how a change in the amount of a single variable input affects output
• The phases of production that consist of increasing, decreasing, and negative returns

What does the marginal product curve represent?

• The number of carpenters
• The number of garages per year
• The total output or production by a firm
• The extra output due to the addition of one more unit of input

What is the law of diminishing returns?

• A stage of production where output increases at a decreasing rate as more units of the variable input are added
• A production period so short that only variable inputs can be changed
• A production period long enough to change the amount of variable and fixed inputs used in production
• A stage of production where output decreases as more units of the variable input are added

What is the short run?

• A stage of production where output increases at a decreasing rate as more units of the variable input are added
• A production period so short that only variable inputs can be changed
• A production period long enough to change the amount of variable and fixed inputs used in production
• A stage of production where output decreases as more units of the variable input are added

What is the long run?

• A stage of production where output increases at a decreasing rate as more units of the variable input are added
• A production period so short that only variable inputs can be changed
• A production period long enough to change the amount of variable and fixed inputs used in production
• A stage of production where output decreases as more units of the variable input are added

What is the stage of production where output increases slower as more units of the variable input are added?

• Increasing Marginal Returns
• Diminishing Marginal Returns
• Negative Marginal Returns
• Average Product

What is the stage of production where output decreases as more units of the variable input are added?

• Increasing Marginal Returns
• Diminishing Marginal Returns
• Negative Marginal Returns
• Average Product