Marginal product:
A. diminishes at all levels of production.
B. may initially increase, then diminish, but never become negative.
C. may initially increase, then diminish, and ultimately become negative.
D. is always less than average product.
Answer: C
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All production involves an opportunity cost because
a. to produce costs money b. costs of production are sky rocketing c. to produce more of one thing, we must produce more of everything d. to produce more of one thing, we must produce less of something else e. when an individual obtains more of a good, he may not be fully satisfied
To the monetarists, the key to maintaining stable economic growth is
A. balancing the federal budget. B. maintaining adequate aggregate supply. C. maintaining a constant and low increase in money supply. D. maintaining adequate aggregate demand.