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QUESTION IMAGE

if marginal product is greater than average product, then marginal prod…

Question

if marginal product is greater than average product, then
marginal product must be increasing.
marginal product must be decreasing.
average product must be decreasing.
marginal product could either be increasing or decreasing.
question 33
both individual buyers and sellers in perfect competition
have the market price dictated to them by government.
have to take the market price as a given.
can influence the market price by their own individual actions.
can influence the market price by joining with a few of their competitors.

Explanation:

Brief Explanations

For the first question, when marginal product is greater than average product, it pulls the average product up. But marginal product itself could be increasing or decreasing. For the second question, in perfect - competition, both individual buyers and sellers are price - takers and have to take the market price as a given because they are too small to influence the market price.

Answer:

First question: marginal product could either be increasing or decreasing.
Second question: have to take the market price as a given.