If a production function exhibits diminishing marginal product. its slope ?
A. is linear (a straight line)
B. becomes steeper as the quantity of the input increase
C. could be any of these answers
D. becomes flatter as the quantity of the input increase
Related Questions on Average & Total Cost, Application of Economics & Income Inequality Mcqs
A. be flat (horizontal)
B. slope upward
C. slope downward
D. be U-shaped.
When marginal costs are below average total costs ?
A. average fixed cost is rising
B. average total cost is falling
C. average total cost is raising
D. average total cost is minimized
Which of the following statements is true ?
A. All costs are fixed in the short run.
B. All costs are variable in the long run
C. All costs are variable in the short run
D. All costs are fixed in the long run
Economic profit is equal to total revenue minus ?
A. variable costs
B. implicit costs
C. explicit costs
D. marginal costs