Whenever Average Profit Is Declining with Increases in Output,marginal

question 35

Multiple Choice

Whenever average profit is declining with increases in output,marginal

• A) revenue is less than marginal cost.
• B) revenue is greater than marginal cost.
• C) revenue is equal to marginal cost.
• D) profit is less than average profit.
• E) profit is negative.

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Definitions:

Zinc

A metallic element used primarily for galvanizing iron and steel to prevent rust and in alloys such as brass, along with various other applications.

Factor Prices

Prices paid for the use of factors of production such as labor, capital, and land.

Production Function

An equation that describes the maximum amount of output that can be produced from a given set of inputs.

Short-Run Total Cost

The total of all costs incurred in the production process when some factors of production are fixed.