Question:

Whenever marginal product is increasing with increasing use of an input,

A.

Total product is increasing at a decreasing rate

B.

Total product is increasing at an increasing rate

C.

Marginal product is less than average product

D.

Average product is decreasing.

Answer» b. Total product is increasing at an increasing rate

Question:

The demand curve for a perfectly competitive firm

A.

slopes downward as the quantity demanded increases as the firm lowers price

B.

is a horizontal, perfectly elastic demand curve at the market price

C.

is a straight, downward sloping curve that is price elastic at higher prices and price inelastic as price falls and approaches zero

D.

both (b) and (c)

Answer» b. is a horizontal, perfectly elastic demand curve at the market price