G Which of the ssessmenttakelaunch jspcourse assessment id 7

G Which of the ssessment/take/launch jsp?course assessment id 78567 1&course; id 13672 18content id- 1.0000 https .//faytechcc.blackboard c QUESTION 1 Which of the following statements is true? The short run is any period of time in which there is at least one fixed input All of the above. A fixed input is any resource for which the quantity cannot change during the period under consideration Economic profit equals accounting profit minus implicit costs In the long run there are no foxed costs QUESTION 2 1.0000 Which of the following statements is true? When marginal productivity of a variable input is falling then marginal costs of production must be rising average cost fals The law of diminishing returns states that beyond some point the marginal product of a variable resource wen ea lowk xorngoroxwæsxetis Bbon surngo con continues to rise Fixed costs are costs which vary with the output level The marginal product is the change in total output by adding one additional unit of a fixed input. Click Save and Submit to sove and submit. Click Save All Answers to save all answers Save All Answers arch

Solution

1. Option 2. All of the above.

Explanation: In the short-term, at least one input is fixed and in the long-term all inputs are variable. The quantity of a fixed input cannot be changed within a specified period and the quantity of a variable input can be changed in any period. Accounting profit = Revenue - explicit costs. Economic profit = Revenue - (explicit costs + implicit costs). So, economic profit = accounting profit - implicit costs. In the long-run, all inputs are variables; so, there are no fixed costs. So, all the statements are correct.

2. Option 1: When the marginal productivity of a variable input is falling, then the marginal cost of production must be rising.

Explanation: When the marginal productivity of a variable input falls, it means each additional unit of the input is yielding less and less amount of output. This means each successive unit of the output requires more and more units of the input. So, naturally, the marginal cost of production is rising.