Which One of the Following Statements Is True

question 105

Multiple Choice

Which one of the following statements is true?

• A)The highest value of average product occurs where average product is greater than marginal product.
• B)When the average product curve is rising,marginal product is less than average product.
• C)When the average product curve is falling,marginal product is greater than average product.
• D)The maximum total product occurs at minimum marginal product.
• E)The highest value of average product occurs where average product equals marginal product.

---

Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent or salaries.

Technology A

Refers to a generic term used to describe a specific technology, typically when comparing it to another technology (e.g., Technology B).

Break Even

The point at which total costs and total revenues are equal, resulting in no profit or loss for a business.

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including items like lease payments, wages, and insurance costs.