According to the marginal productivity theory of resource demand, the labor-demand schedule for a producer selling in a purely competitive market is:
A. The same as the marginal resource cost schedule
B. The same as the marginal productivity schedule
C. The same as the marginal revenue product schedule
D. Independent of the value of the product being produced
C. The same as the marginal revenue product schedule
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When average costs of production are falling, average cost:
a. is higher than marginal cost. b. is equal to price. c. is negative. d. is less than marginal cost.
Which of the following statements is true?
A) Productive inefficiency implies that it is possible to produce more of one good and no less of another, but only if additional resources are made available. B) Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. C) Productive inefficiency implies that it is impossible to produce more of one good and no less of another. D) Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.