Which of the Following Statements Is True

question 332

Multiple Choice

Which of the following statements is true?

• A) The marginal and average product curves intersect at the maximum level of output.
• B) At every output level the marginal product curve lies above the average product curve.
• C) The marginal product and average product curves intersect when average product is at its maximum.
• D) The marginal product curve always has a positive slope.

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Definitions:

Opportunity Costs

The loss of potential gain from other alternatives when one particular option is chosen over others.

Predatory Dumping

A practice where a company exports a product at a price significantly lower than its normal value, with the intention to drive out competition in the import country.

Sporadic Dumping

Occurs when a company exports a product at a price significantly lower than the price in its domestic market, but does so irregularly or occasionally.

Rent Seeking

The practice of gaining wealth without creating new wealth or value, often through manipulation of the social or political environment.