What is the relationship between the marginal product curve and the total product curve?
What will be an ideal response?
The marginal product curve is the slope of the total product curve. Thus, marginal product is positive as long as total product is rising.
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The concept of Nash equilibrium states that
A) no firm can improve their outcome holding the other firm's actions constant. B) all firms are earning the highest possible profit. C) firms make alternating output decisions. D) None of the above
The result that, under certain circumstances, no government action is needed to control an externality because it can be eliminated by bargaining between the affected parties is called
A) a Nash equilibrium. B) Coase Theorem. C) Bargaining Theorem. D) English Bargaining.
Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $1 per can, the price of a hamburger is $2, Bill's marginal utility from Pepsi is 4, and his marginal utility from hamburgers is 6
Bill could increase his utility by: A) increasing Pepsi consumption and reducing hamburger consumption. B) increasing hamburger consumption and reducing Pepsi consumption. C) maintaining his current consumption choices. D) We do not have enough information to answer this question.
In economics, a public good
A. Cannot be denied to consumers who have not paid. B. Is provided in an optimal amount by the market. C. Is any good produced by the government. D. Has social costs of production lower than private costs of production.