Which of the Following Statements About the Short-Run Production Function

question 17

Multiple Choice

Which of the following statements about the short-run production function is true?

• A)MP always equals AP at the maximum point of MP.
• B)MP always equals zero when TP is at its maximum point.
• C)TP starts to decline at the point of diminishing returns.
• D)When MP diminishes,AP is at its minimum point.
• E)None of the above is true.

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Definitions:

Cotton Gin

Invented by Eli Whitney in 1793, the machine that separated cotton seed from cotton fiber, speeding cotton processing and making profitable the cultivation of the more hardy, but difficult to clean, short-staple cotton; led directly to the dramatic nineteenth-century expansion of slavery in the South.

Eli Whitney

An American inventor best known for inventing the cotton gin, a device that revolutionized the cotton industry.

Boll Weevil

A beetle that feeds on cotton buds and flowers, historically significant for its devastating impact on the United States cotton industry.

Mid-Nineteenth Century

Refers to the period approximately from 1830 to 1870, a time marked by significant historical events including the American Civil War.