Which of the Following Is True? Average Product

question 67

Multiple Choice

Which of the following is true? Average product:

• A)increases or decreases as marginal product decreases or increases.
• B)is always less than marginal product.
• C)reaches its maximum when it is equal to marginal product.
• D)increases or decreases as marginal product increases or decreases.

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Definitions:

Restraints Of Trade

Legal restrictions placed on business practices that can limit competition or manipulate markets.

Economic Competition

The rivalry among businesses to attract customers and achieve a higher market share, driving innovation and efficiency.

Resale Price Maintenance

A practice where a manufacturer or wholesaler controls the retail price at which products are sold by retailers, often to maintain brand image or prevent price wars.

Anticompetitive Effects

Refer to actions or outcomes that reduce competition in a market, leading to less consumer choice and possibly higher prices.