A Cubic Specification for a Short-Run Production Function Is Appropriate

question 14

Multiple Choice

A cubic specification for a short-run production function is appropriate when the scatter diagram indicates

• A) an S-shaped total product curve.
• B) marginal product of labor falls throughout the range of labor usage.
• C) total product is decreasing throughout the range of labor usage.
• D) an S-shaped marginal product of labor curve.
• E) a -shaped marginal product of labor curve (MP first falls and then rises as labor usage increases.

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Income Inequality

The unequal distribution of household or individual income across the various participants in an economy, which often leads to social and economic disparity.