Choose which statement is most correct
A) Real GDP can never exceed potential GDP.
B) Real GDP must always equal potential GDP.
C) At times, real GDP can exceed potential GDP.
D) Nominal GDP can never exceed potential GDP.
E) Nominal GDP must always equal potential GDP.
C
Economics
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The change in a firm's total cost from producing one more unit of a good or service is
A) the definition of marginal product B) the result of economies of scale. C) the definition of marginal cost. D) impossible to observe in large firms with many manufacturing plants.
Economics
For a fixed proportion production function, at the vertex of any of the (L-shaped) isoquants the marginal productivity of either input is:
a. constant. b. zero. c. negative. d. a value that cannot be determined.
Economics