Which of the Following Statements Is Correct for a Variable

question 44

Multiple Choice

Which of the following statements is correct for a variable input "a" and short-run product curves?

• A) When TP_a reaches a maximum, the MP_a is zero.
• B) Then TP_a reaches a maximum, the MP_a is +1.
• C) When AP_a reaches a maximum, MP_a is zero.
• D) When MP_a reaches a maximum, AP_a is zero.
• E) None of the above is correct.

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Definitions:

Personally Liable

Responsibility on an individual level for debts or legal obligations, rather than through an intermediary like a corporation or LLC.

Partnership

An authorized business setup where multiple individuals participate in management and equally divide profits.

Profits

Financial gains obtained after deducting the costs, expenses, and taxes associated with doing business or an economic activity.

Sole Proprietorship

A business structure where a single individual owns and operates the business, personally responsible for all debts and legal actions.