Average, marginal, and total product curves
A) demonstrate that, in the short run, all inputs are variable.
B) express relationships between physical inputs and physical outputs.
C) relate the prices of inputs (factors of production) to the prices of products.
D) demonstrate that each of these measures of output increase as more inputs are applied.
E) relate the price of output to the quantity supplied.

Question

Quizplus · Accepted Answer

The average, marginal, and total product curves show the relationships between physical inputs (such as labor) and physical outputs (such as the quantity of goods produced). They do not relate to prices of inputs or products, and while they do demonstrate increases in output as more inputs are applied, this does not necessarily relate to the price of the output or quantity supplied. The concept of all inputs being variable is related to the short-run vs. long-run distinction, and is not directly related to the product curves themselves.

Average, Marginal, and Total Product Curves