If Average Profit Increases with Output Marginal Profit Must Be

question 35

Multiple Choice

If average profit increases with output marginal profit must be:

• A) decreasing.
• B) greater than average profit.
• C) less than average profit.
• D) increasing.

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Definitions:

NPV Analysis

A method of calculating the present value of an investment's expected cash flows minus the initial investment cost to assess profitability.

Externalities

The unintended positive or negative consequences of an economic activity on unrelated third parties.

Greenhouse Gas Emissions

The release of gases into the atmosphere that trap heat, leading to global warming and climate change.

Dissipation Rate

The rate at which an economic benefit is eroded or diminished over time, often used in environmental economics and resource management.