Guys something think about 😀 1. In the short run, which of the following is true? o A) All inputs are variable. o B) All costs are fixed. o C) At least one input is fixed. o D) Firms can freely enter and exit the industry. The Law of Diminishing Marginal Returns occurs when: o A) Total product starts to fall. o B) Total product increases at a decreasing rate. o C) Marginal cost is at its minimum point. o D) Average product is equal to marginal product. Marginal Product (MP) is mathematically defined as: o A) Total Product divided by the number of workers. o B) The change in Total Product divided by the change in input. o C) The sum of all output produced by all workers. o D) Total Cost minus Fixed Cost. When Marginal Product is greater than Average Product (MP > AP): o A) Average Product must be rising. o B) Average Product must be falling. o C) Total Product must be negative. o D) Marginal Cost is at its maximum.

Another one Khathutshelo — let's solve it. 1. C) At least one input is fixed. In the short run, firms cannot change the quantity of all inputs. At least one input, typically capital, is fixed, while others like labor are variable. Options A and D describe the long run, and B is incorrect as some costs are variable in the short run. 2. B) Total product increases at a decreasing rate. The Law of Diminishing Marginal Returns states that as more units of a variable input (like labor) are added to a fixed input (like capital), the marginal product of the variable input will eventually decrease. This means total product is still increasing, but at a slower and slower rate. Total product starts to fall only after marginal product becomes negative. 3. B) The change in Total Product divided by the change in input. Marginal Product (MP) measures the additional output produced by adding one more unit of a variable input, holding all other inputs constant. It is calculated as ΔTP / ΔL (change in total product divided by change in labor). 4. A) Average Product must be rising. When the Marginal Product (MP) is greater than the Average Product (AP), it means the additional unit of input is contributing more to total output than the average of previous units. This pulls the average up, causing the Average Product to rise. What's next? 📸