Which of the Following Is True

question 2

Multiple Choice

Which of the following is true?

• A) If average total cost is less than marginal cost, then average total cost is decreasing.
• B) If average total cost exceeds marginal cost, then average total cost is decreasing.
• C) If average total cost exceeds marginal cost, then average total cost is increasing.
• D) If average total cost is less than marginal cost, then average total cost is constant.

Interpret the significance of resource market prices as indicators of scarcity and their effect on production decisions.

Understand the concepts of marginal revenue product (MRP) and marginal product of labor.

Analyze the relationship between technological improvements and labor demand.

Understand the impact of changes in input prices on the demand for substitute inputs.

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Definitions:

Safety Needs

Refers to the psychological and physical security requirements that are considered essential for an individual's well-being and survival.

Social Needs

Fundamental human requirements for belonging, love, and affection that motivate behavior and influence social interactions and relationships.

Esteem Needs

According to Maslow's hierarchy of needs, these are the fourth level of human needs, involving respect, self-esteem, and recognition from others.

Self-Actualization

The realization or fulfillment of one’s talents and potentialities, considered as a drive or need present in everyone.