Variable Factor and Production Decision Quiz

The ______ changes in accordance with the volume of production.

The ability to produce is prescribed by resources availability and state of ______.

The willingness to produce is prescribed by the profit incentives relative to production ______.

In the short-run, the quantities of one or more production factors ______ be changed.

The production function is a relationship between quantities of various inputs used and the maximum output that can be produced per unit of ______.

Operating Equipment (Capital) is ______ at 10 units.

The Law of Diminishing Marginal Returns predicts that after some optimal level of capacity is reached, adding an additional factor of production will result in smaller increases in output. It is usually used for the ________.

The total product curve reaches its saturation when the marginal product is ________ and at the declining portion of the total product, the marginal product is ________.

When marginal product is greater than average product, the average product ________ as labor increases.

When marginal product equals average product, the average product is ________.

When marginal product is less than average product, the average product will fall as labor input ________.

Stage I of production starts at the origin until the highest portion of the ________ product.

Total Product starts at zero for labor and then increases as additional number of surgeons are applied, reaching a maximum of 112 surgical operations conducted when seven (7) surgeons are added. Average Product is defined as the output per unit of a particular product. It is obtained by dividing total product (TP) by its corresponding units of labor. Total Product reaches a maximum of ______ surgical operations when seven surgeons are added.

Marginal Product of input is the extra product or output added by 1 extra unit of that input while other inputs are held constant. MP is calculated as the change in Total Product divided by the change in input. The marginal product for the first three surgeons performing an operation increases, then it starts to decrease until it falls to ___ for the 9th labor.

Average Product does not reach negative because total product does not have negative values. Marginal Product is the slope of the total product curve. The trend of marginal product starts to decline until the additional surgeons employed has a ______ implication.

Total Product for the illustrated production function reaches a maximum of 112 surgical operations conducted when seven surgeons are added. Average Product is defined as the output per unit of a particular product. It is obtained by dividing total product (TP) by its corresponding units of labor. Average Product measures the productivity of labor (surgeon) in terms of how much, on average, each surgeon can perform. Total Product starts at zero for labor and then increases as additional number of surgeons are applied, reaching a maximum of 112 surgical operations conducted when ___ surgeons are added.

Marginal Product is the extra product or output added by 1 extra unit of input while other inputs are held constant. MP is calculated as the change in Total Product divided by the change in input. The trend of marginal product for the first three surgeons performing an operation increases, then it starts to decrease until it falls to -4 for the ___ labor.

Total Product starts at zero for labor and then increases as additional number of surgeons are applied. Total Product reaches a maximum of 112 surgical operations conducted when ___ surgeons are added. The trend of marginal product starts to decline until the additional surgeons employed has a negative implication.

A shift of an isoquant to the right means that there is an increase in ______

Isoquants further from the origin represent greater output ______

Isoquants are usually convex to the origin. This manifests that the slope of the isoquant gets flatter down along the curve. Diminishing Marginal Rate of Technical Substitution (DMRTS) is observed due to this ______

More than one input level is free to be altered, a firm faces the question of ‘what is the best input combination to use?’ This is addressed by the concept of ______

Stage III of production begins where marginal product is zero until its negative range. It is the most favorable stage because the average product and marginal product are both positive though ______

The producer can produce more even if he withdraws some units of labor and still increase its ______

The slope of isoquants is the Marginal Rate of Technical Substitution (MRTS), which specifies how much units of capital (K) a firm should give up to obtain additional units of labor (L). Computing for MRTS, MRTS = ∆𝑲 (capital) / ∆𝑳 (labor) = ______ / ______

ISOCOST is a straight line showing different combinations of capital (K) and labor (L) that a firm can purchase or hire given its total outlay and the factor prices. Assuming Price of K (capital) = 2 pesos, Price of L (Labor) = 4 pesos, and Total outlay = 20 pesos per time period, find the two points where the outlay is spent on only one input. ISOCOST is a combination of equal ______.

An isocost that shifts to the right indicates an increase in total outlay, while a leftward shift denotes a decrease in total outlay. ISOCOST MAP helps in finding the optimal choice of input combination for producers of health care products to achieve equilibrium graphically, where the producer maximizes production at the point of tangency between isocost and ______.

MRTS can be calculated as ∆𝑲 (capital) / ∆𝑳 (labor) = (23 - 25) / (2 - 3). Here, MRTS = ______.

In the short-run, the quantities of one or more production factors ______ be changed.

The willingness to produce is prescribed by the profit incentives relative to production. The producer of health care products is in equilibrium graphically when, given total outlay and factor prices, the producer maximizes production at the point of tangency between isocost and ______.