Exam 8: The Discovery of Production and Its Technology

A period of time so short that producers are unable to vary any of their inputs to meet changes in demand or other changes is called the

An production indifference curve is the set of bundles that most efficiently produce the same output given a production function.

If all inputs are doubled and the resulting output increases by more than a factor to two, the technology features

Opportunity cost is measured by the amount of money spent to perform any activity.

The assumption that states that, if there is a production activity y that produces a certain amount of output z using capital and labor in particular amounts and another activity w that produces the same quantity using different amounts of these inputs, then we can always produce at least z by mixing these activities and using y a fraction of the time and w a fraction of the time is known as the

Exhibit 8-1 (a) (b) (c) -Refer to Exhibit 8-1. Which graph depicts increasing returns to scale?

Why is normal profit the minimum amount that an entrepreneur must earn in order to keep the business operating?

The assumption that states that, if an input combination y is a feasible input combination, then so is λy where 0 ≤λ≤ 1 is known as theλ

The increase in the amount of output produced that results when we add one more unit of labor, but hold all other inputs constant is called

An example of a total product curve is how much output we get at different levels of

The assumption that states that, if we can produce an output of x using one combination of inputs and another level of output of y using another combination of these inputs, then we can feasibly produce the output x + y is known as the

If all inputs are doubled and so is the resulting output, the technology features

Exhibit 8-2 -Refer to Exhibit 8-2. The curve shown most likely depicts

The no free lunch assumption states that you cannot get any output from a production process without inputs.

Exhibit 8-3 -Refer to Exhibit 8-3. This graph most likely illustrates which type of production function?

The production function that allows the producer to vary the levels of some, but not all inputs in an effort to produce a given quantity is called the short-run production function.

As you are taking this test, which period of economic time is your professor functioning in to produce the service economic education?

The long-run production function allows the producer to vary the levels of _____ inputs in an effort to produce a given quantity.

The marginal rate of technical substitution measures the ratio between the resulting change in the output level and the proportionate change in the levels of all the inputs.

A return that is just sufficient to recover an entrepreneur's opportunity cost is known as