AGEC 105 - chapter 6 Exam Questions and Answers Graded A+

AGEC 105 - chapter 6 Exam Questions
and Answers Graded A+

What are the conditions for perfect competition? - Correct answer-- homogeneous

products

- no barriers

- many sellers

- perfect information

T/F: usally, firms can influence the market price - Correct answer-false

production differentiation is caused by what? - Correct answer-advertisement

classification of inputs: land - Correct answer-renewable and non-renewable

resources

classification of inputs: labor - Correct answer-all owner and hired services

NOT including management

classification of inputs: capital/materials - Correct answer-manufactured goods



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, classification of inputs: management - Correct answer-production decisions

designed to achieve specific economics goals

What does T.P.P. stand for and what is the formula? - Correct answer-The

Production Function

Total Physical Product Curve




T∆output ÷ T∆input item

What does M.P.P. stand for and what is the formula? - Correct answer-Marginal

Physical Product




∆output ÷ ∆input item

What does the M.P.P. Curve measure? - Correct answer-The rate of change in

output in response to a change in the use of labor

In other words, the slope of the T.P.P. Curve is approximately equal to the... -

Correct answer-slope of M.P.P.

What does A.P.P. stand for and what is the formula? - Correct answer-Average

Physical Product


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