An input is indivisible if:
A. it cannot be increased to produce a larger quantity of output.
B. it cannot be used as a substitute for other inputs in the production process.
C. it is sufficiently inexpensive to purchase that firms will want to buy as much as they can.
D. it cannot be scaled down to produce a smaller quantity of output.
Answer: D
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Consider a good whose consumption takes place publicly. Your decision to buy that good depends
A) both on the characteristics of the product and on how many other people are buying the good. B) only on the price of the good. C) only on how many other people buy the good. D) only on the characteristics of the good.
One goal a firm tries to achieve when it advertises a product is to
A) make the demand curve for the product more elastic. B) make the demand curve for the product unitary elastic. C) make the demand curve for the product more inelastic. D) shift the demand curve for the product to the left.