In a typical short-run production function, before diminishing returns set in, the slope of the total product curve
A. is increasing.
B. is decreasing.
C. rises and then falls before diminishing returns sets in.
D. falls and then rises before diminishing returns sets in.
Answer: A
You might also like to view...
If on a given product indifference curve, a firm is using an insufficient (nonoptimal) amount of one of its inputs,
A. output will be below optimal. B. the MRP of the input will be below its price. C. costs will not be minimal. D. relative input prices need to change.
Which of the following markets most closely resembles the characteristics of a perfectly competitive market?
A. The cable television industry B. The fast food restaurant industry C. The steel industry D. Hot dog vendors on city streets
In the late 1970s into the early 1980s, interest rates were high and very volatile. During this period:
A. money demand as well as velocity should have also been shifting and volatile. B. the Fed was actually targeting the short-term interest rate. C. the velocity of money should have been stable. D. it should have been easy for the Fed to predict the velocity of money.
Most firms have
a. no monopoly pricing power. b. some monopoly pricing power. c. absolute monopoly pricing power. d. the ability to earn monopoly profits.