Chapter 6 Post Quiz
Production and Business Organization

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Production function	a. Q/L.
	2. Total product	b. Time frame in which firms are able to change all of the factors of production including capital.
	3. Marginal product	c. Shows the maximum output that can be produced with a given quantity of inputs.
	4. AP	d. As we add more and more units of the inputs to production process, we get fewer and fewer additional units of output.
	5. Law of diminishing returns	e. Improvements in the processes for producing goods and services, changes in old products, or introduction of new products.
	6. Economies of scale	f. The extra output produced by adding an additional unit of an input to the production process while holding other inputs to production constant.
	7. Long-run	g. The total amount of output produced.
	8. Technological change	h. An example of an individual proprietorship.
	9. Productivity	i. It will be charged an extra tax on its profits.
	10. Small-town hardware store	j. A fixed input to production in the short-run.
	11. A disadvantage of a corporation	k. A fixed input to production in the short-run.
	12. Captial	l. Arise when a increase in all inputs leads to a more-than-proportional increase in the level of output.
	13. Network	m. The ratio of total output to a weighted average of inputs.