The term bottleneck refers to
a. when increasing variable inputs must share a fixed amount of complementary input.
b. fixity of some factor
c. None of the above
d. Both a and b
QUESTION 2An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
a. price of substitute goods
b. level of competitor advertising
c. consumer income level
d. consumer desires for goods and services
e. a and b
QUESTION 3In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed
b. Managers typically have the necessary information to run their division efficiently
c. Managers' decisions rarely affect other divisions
d. Managers typically do not have the incentives to run their division efficiently
QUESTION 4Which of the following statements describes the presence of diminishing returns? All else equal,
a. Marginal product curve is constant
b. Marginal product curve is falling and negative
c. Marginal product curve is positive and rising
d. Marginal product curve is positive and falling
QUESTION 5The factor(s) which cause(s) a movement along the demand curve include(s):
a. increase in level of advertising
b. decrease in price of complementary goods
c. increase in consumer disposable income
d. decrease in price of the good demanded
e. all of the above
QUESTION 6In profit centers
a. Managers are easy to evaluate because there is a simple metric of how well they performed
b. Managers typically do not have the information to run their division efficiently
c. Managers' decisions rarely affect other divisions
d. Managers typically do not have the incentives to run their division efficiently
QUESTION 7In any production process the marginal product of labor equals
a. Change in total output divided by change in labor input
b. Total output divided by total input
c. Total output
d. None of the above
Quick Reply
