Average product is positive-total product must be increasing

Assignment Help Microeconomics

Reference no: EM13692358

Explain if each of the following statements is true or not:

i. If average product is increasing, marginal product must be less than average product.

ii. If marginal product is negative, average product must be negative.

iii. If average product is positive, total product must be increasing.

Reference no: EM13692358

Questions Cloud

Businesses that require high-quality audio systems : At the beginning of the year, an audio engineer quit his job and gave up a salary of $175,000 per year to start his own business Sound Devices, Inc. The new company builds, installs and maintains custom audio equipment for businesses that require hig..

Predict the effect of e-commerce on equilibrium output : Business Week recently declared, “We have entered the Age of the Internet” and observed that when markets for goods or services gain access to Internet, more consumers and more businesses participate in the market.

Differences between quotas and tariffs : Tariffs and quotas can be used to achieve similar ends. In fact, for any given quota, there is an equivalent tariff that will limit imports to exactly the same amount. Still, there are differences between quotas and tariffs.

Environmentalist groups act to directly reduce of emissions : Environmentalist groups act to directly reduce of emissions by. The property rights approach to environmental issues often becomes highly relevant in cases involving __________________.

Average product is positive-total product must be increasing : If average product is increasing, marginal product must be less than average product. If marginal product is negative, average product must be negative.

How do you determine the net present value of an investment : What do we mean by discounting? What does present value mean? How do you determine the net present value of an investment? Why do private discounts rates and social discounts rates differ?

Output using capital and labor using production technology : A firm produces an output using capital and labor using the production technology described by f(xL; xK) = xLxK. Let w denote the price of labor and r denote the price of capital. Assume that w = $2 and r = $1.

Chair of the council of economic advisers has requested : Normal 0 false false false EN-US X-NONE X-NONE The chair of the Council ..

User Account

All Pages