If, After Reaching a Certain Level of Production, One Additional

question 11

Multiple Choice

If, after reaching a certain level of production, one additional unit an input variable would produce a decline in total product, then:

• A) diminishing marginal returns to that input have begun.
• B) the output level where marginal product of that input is maximized has not yet been reached.
• C) the output level where marginal product of that input is equal to zero has been reached.
• D) average product of that input is at its minimum.
• E) average product of that input is increasing.

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Definitions:

Normal Good

A type of good for which demand increases as the income of an individual increases.

Major League Baseball

A professional baseball organization comprising teams in the United States and Canada, noted for its significant cultural and economic impact on sports.

Substitutes

Goods, such as tacos and pizza, that relate in such a way that an increase in the price of one shifts the demand for the other rightward.

Honey

A sweet, viscous food substance made by bees from the nectar of flowers.