What does a firm's short-run total product curve show and what is its significance?
What will be an ideal response?
A short-run total product curve shows the way the maximum output increases when the input of a variable factor of production (such as labor) increases, holding all other factors of production fixed. Its significance is that it shows the productivity of the variable factor of production as output is increased. The latter, in turn, is an important determinant of a firm's short run costs.
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Which of the following statements is true?
A) If the domestic price of a good in a country is higher than the world price, the country will become an exporter of the good. B) Whether a country becomes an importer or an exporter of a good depends only on the domestic price of the good and is independent of the world price of the good. C) If the domestic price of a good in a country is higher than the world price, the country will become an importer of the good. D) Whether a country becomes an importer or an exporter of a good depends only on the world price of the good and is independent of the domestic price of the good.
If a product's price increases, then its:
a. MP will increase. b. MFC will increase. c. MRP will increase. d. MP will decrease.