The Production Function

A production function shows the relationship between inputs and ______.

• fixed costs

• variable costs

• total revenue

• output

• profit

Which of the following is true in the long run?

• All inputs are fixed.

• All inputs are variable.

• No inputs are variable.

• At least one input is fixed.

• At least one input is variable.

Which of the following is an input that might be measured by the production function? (CHOOSE ALL THAT APPLY)

• land

• physical capital

• cost

• labor

• exchange rate

Which of the following defines the short run?

• less than a year

• when all inputs are fixed

• when no inputs are variable

• when only one input is variable

• when at least one input is fixed

The change in total product curve per additional unit of input is also known as the ______.

• marginal product

• marginal cost

• average product

• average revenue

• profit

Which of the following is often responsible for increasing returns?

• entrepreneurship

• advertising

• specialization

• artificial intelligence

• increasing inputs

Which of the following can mitigate diminishing returns to inputs? (CHOOSE 2)

• increasing population

• disease

• technology

• reducing the number of consumers

• improving human capital