Production is a transformation of resources or inputs into g…

Production is a transformation of resources or inputs into goods and services. Economists talk about two types of inputs in the production process—fixed and variable. A (1)__________ input is an input whose quantity can be changed as output changes.  while a (2)________ input is an input whose quantity cannot be changed as output changes,

Armen Alchian and Harold Demsetz suggest that firms are form…

Armen Alchian and Harold Demsetz suggest that firms are formed when the benefits that can be gained from working as a team are less than the sum of the benefits that could be gained by acting individually. (1)________________(Ture/False) According to Ronald Coase, firms exist to reduce transaction costs.  (2)_____________(Ture/False) 

__________________ states that as ever larger amounts of a v…

__________________ states that as ever larger amounts of a variable input are combined with fixed inputs, eventually the marginal physical product of the variable input will decline. Since no inputs are fixed in the long run, this law applies to the short run, but not the long run.