In economics, what is the purpose of business operation?
pursues the maximization of profits.
pursues the maximization of social welfare
pursues the maximization of sales volume
pursues the minimization of costs
Three days must be a short run
True
False
One year must be the long-run
True
False
Money is a factor of production?
True
False
The factor of production that represents human effort and skills is ______.
Which factor of production refers to the tools, equipment and other man - made resources used in production?
In the short run, a bakery's fixed input is likely to be ______.
The flour used for baking
The number of bakers employed
The oven in the bakery
The packaging materials
For a small clothing factory, which of the following is a variable input?
The sewing machines
The lease of the factory space
The number of sewing workers
The brand - name trademark
A fixed input is an input whose quantity is fixed for a period of time and cannot be varied.
True
False
The marginal product of an input is always positive.
True
False
If a firm adds one more worker and the output increases from 100 units to 110 units, what is the marginal product of this additional worker?
100 units
110 units
10 units
1 unit
The marginal product of an input is the total output produced.
True
False
A pizza shop has a fixed number of ovens. As it hires more and more pizza chefs, which situation shows the law of diminishing marginal returns?
Each new chef makes the same number of pizzas as the last one
The first few chefs increase pizza production a lot, but later chefs add fewer extra pizzas
All chefs together make fewer pizzas than expected
New chefs make more pizzas than the previous ones all the time