Which One of the Following Statements Is Correct

question 142

Multiple Choice

Which one of the following statements is correct?

• A)When marginal product is increasing,average product is decreasing.
• B)When average product is less than zero,marginal product is positive.
• C)When marginal product is increasing and greater than average product,average product is increasing.
• D)When marginal product is zero,total product is at its minimum.
• E)When average product exceeds marginal product,marginal product is increasing.

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, homogenous products, no barriers to entry or exit, and perfect information among market participants.

Normal Good

A good for which demand increases when consumer income rises, showing a positive relationship between income and demand.

Income Rises

An increase in the amount of money or value earned or received by an individual, business, or country over a certain period.

Leisure

A period of free time not taken up by work, domestic responsibilities, or other obligatory tasks, often used for rest, recreation, or cultural activities.