When the average product is at its maximum, the marginal product is increasing a

Question

When the average product is at its maximum, the marginal product is increasing as output increases. it is equal to the marginal product. total product is also at its maximum. the marginal product is negative. total product is at its minimum. A perfectly competitive furniture-rental firm in Phoenix incurs an economic loss if the average total cost of each rental is equal to the price of each rental. greater than the marginal revenue of each rental. greater than the average variable cost of each rental. equal to the marginal revenue of each rental. less than the marginal revenue of each rental. An increase in a consumer's budget shifts the budget line outward and does not change its slope. rotates the budget line outward around the point where it intersects the y -axis. Q shifts the budget line inward and does not change its slope. rotates the budget line inward around the point where it intersects the .y -axis. rotates the budget line outward around the point where it intersects the .y -axis. You have just opened a new Italian restaurant in your hometown where there are three other Italian restaurants. Your restaurant is doing a brisk business and you attribute your success to your distinctive northern Italian cuisine using locally grown organic produce. What is likely to happen to your business in the long run? Your success will invite others to open competing restaurants and ultimately your profits will be driven to zero. If you continue to maintain consistent quality, you will be able to earn profits indefinitely. If your success continues, you will be likely to establish a franchise and expand your market size. Your competitors are likely to change their menus to make their products more similar to yours.

Explanation / Answer

Answers:-

37.) B.) it is equal to the marginal product.

38.) B.) greater than the marginal revenue of each rental.

39.) A.) shifts the budget line outward and does not change its slope.

40.) A) Your success will invite others to open competing restaurants and ultimately your profits will be driven to zero.

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