A firm's total product curve shows?
Possible Answers:
-how the quantity of output changes when the quantity of labor changes.
-that inefficiency is not possible.
-that in the long run the firm must adjust the quantity of all the resources it employs.
-how the cost of the fixed resources change when output changes.
Answer:
The total product (or total physical product) of a variable factor of production identifies what outputs are possible using various levels of the variable input. This can be displayed in either a chart that lists the output level corresponding to various levels of input, or a graph that summarizes the data into a “total product curve”. The diagram shows a typical total product curve. In this example, output increases as more inputs are employed up until point A. The maximum output possible with this production process is Qm. (If there are other inputs used in the process, they are assumed to be fixed.)
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-how the quantity of output changes when the quantity of labor changes.
-that inefficiency is not possible.
-that in the long run the firm must adjust the quantity of all the resources it employs.
-how the cost of the fixed resources change when output changes.
Answer:
The total product (or total physical product) of a variable factor of production identifies what outputs are possible using various levels of the variable input. This can be displayed in either a chart that lists the output level corresponding to various levels of input, or a graph that summarizes the data into a “total product curve”. The diagram shows a typical total product curve. In this example, output increases as more inputs are employed up until point A. The maximum output possible with this production process is Qm. (If there are other inputs used in the process, they are assumed to be fixed.)
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