If the VMP of an Input for a Competitive Firm

question 93

Multiple Choice

If the VMP of an input for a competitive firm is downward sloping, then:

• A)there are diminishing returns to the input.
• B)the aggregate input demand (AID)is upward sloping.
• C)the average revenue product curve is horizontal.
• D)the input is a variable input.

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Definitions:

Graphical Display

The visual representation of data or information, typically in the form of charts, graphs, or tables.

Points

In various contexts, it can refer to a unit of scoring in games and sports, a location in space, or a particular detail or aspect of something.

Variables

Elements, characteristics, or conditions that can change or vary in an experimental or data-gathering setting, and are subject to measurement.

Measured

Determined or quantified through observation, experiment, or calculation.