Assume a company is at a point in production where marginal product is above average product. Which of the following must be true?
A. Marginal product must be rising.
B. Diminishing marginal product must not have set in yet.
C. Average product must be rising.
D. All of these are true.
Answer: C
You might also like to view...
To find a firm’s total revenue at every quantity, all you need to know is
A. the demand curve for its product. B. the demand curve for its product and its total cost. C. its profit-maximizing price and quantity. D. its total profit curve.
Explain why the intersection of the best-response functions is the Cournot equilibrium
What will be an ideal response?
When an economy is operating at full employment, _____
a. structural unemployment does not exist b. cyclical unemployment does not exist c. the unemployment rate is zero d. seasonal unemployment does not exist e. the number of discouraged workers is zero
Cartels usually succumb to divisive forces caused by: a. stringent enforcement of a cartel agreement
b. the similarity of production costs across member firms. c. members cheating by giving secret discounts. d. insufficient profits compared to independent operations.