Let Y^* denote the Level of Output for Which AP

question 36

Multiple Choice

Let y^* denote the level of output for which AP of a variable input reaches a maximum. Then:

• A)for y = y^*, short run SMC is zero.
• B)for y > y^*, the input's SMP exceeds its AP.
• C)for y > y^*, SMC exceeds AVC.
• D)for y < y^*, the input's AP exceeds its SMP.

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