Which Assumption Guarantees That the Marginal Product Will Never Be

question 78

Multiple Choice

Which assumption guarantees that the marginal product will never be negative even when the second derivative of the production function is negative?

• A)non- satiation
• B)free disposal
• C)profit maximizing
• D)cost minimizing

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Definitions:

Business Analysis

The practice of identifying business needs and determining solutions to business problems, often through analyzing data and processes.

Economic Analysis

The study or evaluation of the economic aspects of an action or decision, including costs, benefits, risks, and potential for profit.

Cannibalization Potential

The likelihood that a new product will decrease sales of existing products offered by the same company.

Prototype

An initial model of a product used to test and validate design principles before full-scale production.