Which of the following statements about the short-run production function is true?
A) MP always equals AP at the maximum point of MP.
B) MP always equals zero when TP is at its maximum point.
C) TP starts to decline at the point of diminishing returns.
D) When MP diminishes, AP is at its minimum point.
E) None of the above is true.
B
You might also like to view...
McDonalds and many supermarkets offer vending machines in their stores that rent new movie releases for as low as $1.00 per day provided that they are returned in 24 hours before incurring a late fee
How can Netflix and Blockbuster compete against this type of service? Or is their something else going on there that doesn't first meet the eye?
Perfect competition and monopolistic competition are similar in this one respect:
a. firms make zero economic profit in the long run b. firms produce at the lowest point on their ATC curves c. there are few firms in each industry d. entry is difficult e. firms produce differentiated products
Suppose Iran imposes a tariff on lumber. For the tariff to have any effect, it must be the case that
a. Iran is an exporter of lumber. b. the domestic quantity of lumber supplied exceeds the domestic quantity of lumber demanded at the world price without the tariff. c. the world price without the tariff is less than the price of lumber without trade. d. the world price without the tariff is greater than the price of lumber without trade.
A direct exchange of fish for corn is an example of:
A. storing value. B. a modern exchange method. C. barter. D. a non-coincidence of wants.