Which of the following is true at the output level where diminishing marginal product first set in?
a. Both marginal product and marginal cost are at a minimum
b. Both marginal product and marginal cost are at a maximum.
c. Marginal product is at a maximum and marginal cost is at a minimum.
d. Marginal product is at a minimum and marginal cost is at a maximum.
c
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The basic equation for a bank’s balance sheet is ____.
A. assets = liabilities ? net worth B. net worth = assets ? liabilities C. net worth = assets + liabilities D. liabilities = net worth + assets
In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A ________ macroeconomist would support the use of ________
A) classical; taxes to push the economy back to full employment B) Keynesian; fiscal or monetary policy to stimulate aggregate demand C) classical; monetary policy to stimulate aggregate demand D) Keynesian; technology to push the economy back to full employment
In the long run, firms in a perfectly competitive market produce:
A. at a quantity with positive economic profits. B. where average variable costs are minimized. C. where MC is at its lowest point. D. where price equals marginal cost.
According to the Monetarists, the primary cause of inflation is:
A. large budget deficits. B. high taxes. C. rapid expansion of the money supply. D. government expenditures that are large relative to the size of the economy.