The short-run is _______

less than a year.

when a firm is unable to change some of its inputs.

when a firm is unable to change output.

when a firm is unable to change its price.

The production function tells the firm______

1 point

which input combination has the lowest total cost.

which input combination produces a given output at the lowest possible cost.

the maximum output that can be produced from a given amount of inputs.

which output is the most profitable.

In the short run _______

1 point

all costs are variable.

all inputs are fixed

there may be fixed and variable inputs.

all production decisions must be made on a daily basis.

Total product curve in the first stage of production shows that it is increasing at an increasing rate because ________

1 point

the marginal product is positive and increasing.

the marginal product is positive and decreasing.

the marginal product is negative.

the marginal product is zero.

A negative MP ________

1 point

is consistent with a falling TP.

is associated with a negative AP.

may be consistent with rising or falling TP.

indicates that TP is increasing at a decreasing rate.

When the MP is rising_________

the MC is rising.

MP is equal to AP.

the MC must be falling.

MC is minimum.

If the marginal value of some variables is above the average value of the variable:

the marginal value must be rising.

the marginal value must be falling.

the average value must be rising.

the average value must be falling.

The fixed costs of a firm are costs that stay the same regardless of _______

the amount of output produced.

the price of the fixed input.

the amount of the fixed input employed.

whether the firm is in the short-run or the long-run.

In the short-run, when output is zerO

TC is zero.

TFC is zero.

TVC is zero.

AFC is zero.

The MC curve must be _____

rising when TC is rising.

less than AFC when the average cost is rising.

greater than ATC when the average curve is rising.

falling when the ATC curve lies below the marginal curve.

The law of diminishing marginal returns says that as units of labor are added to the production of an output when all other inputs are fixed, eventually _______

total product declines

marginal product declines

total cost rises.

marginal costs decline.