Consider a Firm in the Short Run

question 17

Multiple Choice

Consider a firm in the short run.If AP = MP and both are positive,then total product

• A)is at a maximum.
• B)is decreasing as extra units of the variable factor are employed.
• C)is increasing as extra units of the variable factor are employed.
• D)may be either increasing or decreasing as extra units of the variable factor are employed.
• E)is at its minimum.

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Definitions:

Sensory Adaptation

The method through which sensory receptors adapt their responsiveness to a stimulus over a period, frequently leading to reduced sensitivity towards a steady stimulus.

Subliminal Stimuli

Signals below the threshold of conscious perception designed to influence thoughts, feelings, or actions.

Top-down Processing

A cognitive process that starts with the analysis of high-level information before proceeding to more detailed data.

Weber's Law

A principle in psychology stating that the just-noticeable difference in a stimulus is proportional to the magnitude of the initial stimulus.