Average product will fall as long as
A) marginal product is falling.
B) it exceeds marginal product.
C) it is less than marginal product.
D) the number of workers is increasing.
Question 2
If a firm is a profit maximizer and faces positive marginal costs,
A) there is a natural limit to the size of the firm, where MR = 0.
B) there is no natural limit to the size of the firm; it can be as large as it wants to be.
C) there is a natural limit to the size of the firm, where MR > 0.
D) there is no natural limit to the size of the firm, hence the need for government regulation.
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