Multiple Choice QuestionTechnological improvements Blank______ the Blank______ of other resources.Multiple choice question.increase; quantityincrease; costincrease; qualitydecrease; qualitydecrease; quantity

Multiple Choice QuestionImprovements in the quality of a variable resource increase Blank______ and therefore its demand.Multiple choice question.costsmarginal productivityqualityresource supplymarginal supply

Multiple Choice QuestionWhen the relative cost of labor rises, a decision must be made whether to substitute and decrease the use of labor and increase the use of another resource input such as machines in order to produce the same amount of output at a lower cost. This statement describes the Blank______ effect.Multiple choice question.netresourcesubstitutionoutput

Multiple Choice QuestionThe cost of a major improvement that extends the useful life of an asset would be Blank______; the cost of maintenance that does not increase the future benefits would be Blank______.Multiple choice question.expensed; expensedexpensed; capitalizedcapitalized; expensedcapitalized; capitalized

Multiple Choice QuestionWhen a product is in high demand with customers based on its value (quality) or price, the demand for the resources to produce that product will be Blank______.Multiple choice question.nonexistentvery highaveragevery low

Multiple Choice QuestionThe Blank______ is the amount that each additional unit of a resource adds to the firm's total resource cost.Multiple choice question.total resource costmarginal resource producttotal revenue productmarginal revenue productmarginal resource cost