Consider a Firm in the Short Run

question 25

Multiple Choice

Consider a firm in the short run. Average product is at its maximum when

• A) the maximum quantity of the variable input is employed.
• B) diminishing returns cease to operate.
• C) average product equals marginal product and marginal product is falling.
• D) marginal product is maximized.
• E) total product is maximized.

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Definitions:

Pituitary Dwarfism

A condition resulting from insufficient growth hormone production by the pituitary gland, leading to shorter than average height.

Growth Hormone

A hormone that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.

Melatonin

Pineal gland hormone that regulates sleep–wake cycles and seasonal changes; secreted only in the dark.

Gonadotropin-Releasing Hormone

A hormone responsible for the release of follicle-stimulating hormone and luteinizing hormone from the anterior pituitary.