Assume a company is at a point in production where marginal product is above average product. Which of the following must be true?
A. Diminishing marginal product must not have set in yet.
B. Marginal product must be rising.
C. Average product must be rising.
D. All of these are true.
C. Average product must be rising.
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Economies of scale are reductions in average
A. Total cost that result from declining average fixed costs. B. Fixed cost that result from reducing the firm's scale of operations. C. Fixed cost resulting from improved technology and production efficiency. D. Total cost that result from using operations of larger size.
The "Economics in Action" in the text mentions that the elasticity of demand for agricultural products is 0.42. If a drought boosts the price of corn 25 percent, then we can calculate the quantity of corn demanded ________
A) increased by 10.5 percent B) decreased by 10.5 percent C) increased by 8.4 percent D) decreased by 8.4 percent
The primary advantage of mutual funds is that they
a. always make a return that "beats the market." b. allow people with small amounts of money to diversify. c. provide customers with a medium of exchange. d. All of the above are correct.
GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. Which good(s) became relatively more expensive for buyers?
A. All three goods became relatively more expensive. B. None of the goods became relatively more expensive. C. Only amusement park tickets became relatively more expensive. D. It depends on the overall rate of inflation in the economy.