When a firm maximizes total product in the short run, average product is
A. negative.
B. zero.
C. positive.
D. Any of the above can be correct.
Answer: C
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Refer to Figure 21.2. If area A = 2,000, area B = 400, and area C = 2,600, what is the Gini coefficient for Ruratania (rounded to two decimal places)?
A) 0.08 B) 0.15 C) 0.48 D) 0.92
Which of the following does NOT lead to an increase in potential GDP?
A) labor force grows B) technological change takes place C) new machinery and equipment are installed D) aggregate expenditures increase
If the price of hotdogs increases by 10 percent and the quantity supplied by meat packing companies increases by 15 percent, what is the price elasticity of supply?
A) 1.65 B) 1.20 C) 0.67 D) 1.50
The more sensitive planned investment is to the interest rate, the less effective fiscal policy.
a. true b. false