The Slope of the Total Product Curve Is

question 160

Multiple Choice

The slope of the total product curve is:

• A) the change in the variable factor of production divided by the change in output.
• B) always negative.
• C) always positive.
• D) the change in output divided by the change in the variable factor of production.

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Definitions:

Competitive Firm

A company that operates in a market with many competitors, facing a highly elastic demand curve for its product because many substitutes are available.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply in the market.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no profit or loss.

Competitive Firm

is a business that operates in a market where it has to compete with other firms for customers and cannot influence market prices.