When the Marginal Physical Product Is Rising

question 68

Multiple Choice

When the marginal physical product is rising

• A) total cost is falling.
• B) average total cost is increasing.
• C) marginal cost is falling.
• D) marginal cost is rising.

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Definitions:

Managed Equity Fund

An investment fund in which a manager or management team makes decisions about how to allocate assets in a portfolio of equities.

Operating Costs

Refers to the day-to-day expenses involved in running a business, such as rent, utilities, and payroll.

Random Walk Theory

The theory that current stock prices already reflect known information about the future. Therefore, the future movement of stock prices will be determined by surprise occurrences. This will cause them to change in a random fashion.

Stock Prices

The current market price of a company's shares, determined by supply and demand factors in the stock market.