The total product curve has a positive slope (for the most part) because: As you

Question

The total product curve has a positive slope (for the most part) because: As you add more of a particular resource to the production process, output will rise (up to some point). The relationship between inputs and outputs is direct until marginal returns become negative. As more of a particular resource is added to the production process, marginal returns may decline but total returns increase (up until some point). All of the above If at the profit maximizing point, the firm finds that average revenue is less than average total cost, but exceeds average variable costs, then it should: Shut down because it is taking economic losses. Continue producing even though it is taking an economic loss. Continue producing because it is earning economic profits. There is not enough information to tell.

Explanation / Answer

(A) The total product curve has a positive slope because --- All of above

(B) If at the profit maximising point, the firm finds that aveage revenue is less than avergae total cost, but exceeds average variable costs then it should --- option B i.e Continue producing eve though it is taking an economic loss

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.