Which of the Following Determines the Shape of the Marginal

question 47

Multiple Choice

Which of the following determines the shape of the marginal cost curve in the short run?

• A)The marginal product of labor is first increasing and then decreasing
• B)The wage rate first decreases and then increases throughout the range of output
• C)The price of output produced by labor is first decreasing and then increasing
• D)The presence of economies of scale in the product market

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Definitions:

Saving

The process of setting aside a portion of current income for future use, either by depositing the money in a bank or investing in various financial assets.

Disposable Income

The amount of income left for spending or saving after taxes and other deductions have been subtracted.

Saving

The act of setting aside a portion of one’s income for future use, instead of spending it immediately.

Disposable Income

After subtracting income taxes, disposable income is the money remaining for individuals or households to spend or save.