Question

With unused resources in the economy, additional output can be produced without increasing which of the following?

पर्याय

• Average revenue

• The equilibrium quantity

• Marginal cost

• Total fixed cost

Answer 1

Because idle machineries, buildings, and labour exist, the law of diminishing returns does not apply, and additional output can be produced without increasing marginal cost. This is why the price level stays constant even when the quantity produced changes.