1. Economics Topic 6 Exercise
1. Marginal product additional output gain without an additional input.
2. –
3. Law of diminishing returns. As more input of raw material are employed in the production
process, at same point each marginal input will generate less and less marginal output.
4.
5. Law of diminishing returns states that as more inputs are employed in the production
process, at same point, each marginal input well generate less and less marginal output.
Causes: Scale constraint (size of the firm’s fixed resources)
Explain: Computers are limited at the workplace.
6. Law of increasing returns. Ach marginal input will generate more and more marginal output.
Cause: Job specialization
7. Per unit sushi cost = AFC + AVC
8. –
9. Variable cost that increase as TP increase.
Explain: Raw material, utility cost and etc.
AVC =