The slope of the total production curve becomes:
A. steeper when marginal product increases, typically at low levels of input.
B. steeper when marginal product decreases, typically at high levels of input.
C. flatter when marginal product increases, typically at high levels of input.
D. flatter when marginal product decreases, typically at low levels of input.
Answer: A
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What's the firm's contribution margin?
a. $15 b. $18 c. $3 d. $4
A nation's standard of living: a. will increase substantially over time even for a small increase in the growth rate. b. will increase by the same amount as the increase in the growth rate
c. will decrease substantially over time even for a small increase in the growth rate. d. will increase less than the amount of the increase in the growth rate.
As trade occurs, increased imports will force domestic importcompeting firms to decrease price and production. Labor and capital will move to exporting firms. What will then happen to wages and returns to capital?
a. Both wages and returns to capital will increase. b. Both wages and returns to capital will decrease. c. Wages will increase and returns to capital will decrease. d. Wages will decrease and returns to capital will increase
The firm in a perfectly competitive industry is a
A. price taker. B. price dealer. C. price maker. D. price seeker.