Suppose a Single-Input Production Function Has Initially Increasing but Eventually

question 28

Multiple Choice

Suppose a single-input production function has initially increasing but eventually decreasing marginal product -- and suppose we know that an interior solution is profit maximizing.In this case, the first order condition for the profit maximization problem

• A)is necessary for identifying the profit maximizing production plan.
• B)is sufficient for identifying the profit maximizing production plan.
• C)is both necessary and sufficient for identifying the profit maximizing production plan.
• D)is neither necessary nor sufficient for identifying the profit maximizing production plan.

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Definitions:

Agricultural Irrigation

The artificial application of water to land or soil to assist in the growing of agricultural crops and the maintenance of landscapes during periods of inadequate rainfall.

Northern European Ancestry

Individuals whose lineage can be traced back to the regions of Northern Europe, including countries like the United Kingdom, Scandinavia, and Germany.

Prior Appropriation

A principle of water rights that allocates the rights to use water from a river or stream to the first person or entity to take water for a beneficial use.

Waterways

Natural or man-made channels through which water flows, used for transportation, irrigation, and other purposes.