If marginal product is a constant what can we conclude about the shape of the average product function and why?
What will be an ideal response?
The average product function will be horizontal. Since the marginal product stays the same the average product will never change.
You might also like to view...
The ratio of a change in consumption to a change in disposable income is the:
a. consumption function. b. propensity to consume. c. average propensity to consume. d. extra propensity to consume. e. marginal propensity to consume.
Specialization: a. leads to greater self-sufficiency
b. can lead to an increase in overall production. c. is always the result of an inefficient use of resources. d. helps workers to develop skills by working on a large number of tasks.
Scarcity means
a. unlimited wants and unlimited available resources. b. unlimited wants and limited available resources. c. limited wants and limited available resources. d. limited wants and unlimited available resources.
Caterpillar, Inc deciding to expand its forklift production line and Sears deciding to open an outlet in Raleigh, North Carolina, are examples of
a. transitory decisions b. investment decisions c. saving decisions d. autonomous consumption e. permanent income