Evaluate the following statement. "If marginal product is falling it will bring down the average product."
What will be an ideal response?
This statement is not necessarily true. If marginal product is falling but still above average product then the average product will rise. However, if it is below average product then indeed it will bring average product down with it.
Economics
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Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $15, how much economic profit does the firm make?
A) $0 B) $30 C) -$10 D) -$15
Economics
Refer to Figure 13-1. Ceteris paribus, a decrease in households' expectations of their future income would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Economics