This is a more difficult question relating to the AS curve. Read the textbook chapter and chapter summary carefully. Identify the correct statement: Olf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a smaller quantity of output when the price of the produced good is lower. Olf there is diminishing marginal product of labor, the aggregate supply curve will slope downward. Olf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a larger quantity of output when the price of the produced good is higher. O When the representative consumer exhibits diminishing marginal utility in the consumption of produced goods, the aggregate demand curve will slope upward.
This is a more difficult question relating to the AS curve. Read the textbook chapter and chapter summary carefully. Identify the correct statement: Olf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a smaller quantity of output when the price of the produced good is lower. Olf there is diminishing marginal product of labor, the aggregate supply curve will slope downward. Olf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a larger quantity of output when the price of the produced good is higher. O When the representative consumer exhibits diminishing marginal utility in the consumption of produced goods, the aggregate demand curve will slope upward.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![This is a more difficult question relating to the AS curve. Read the textbook chapter and chapter
summary carefully. Identify the correct statement:
If there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a smaller
quantity of output when the price of the produced good is lower.
Olf there is diminishing marginal product of labor, the aggregate supply curve will slope downward.
Olf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a larger
quantity of output when the price of the produced good is higher.
O When the representative consumer exhibits diminishing marginal utility in the consumption of produced
goods, the aggregate demand curve will slope upward.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F166ad652-d1bb-47b5-84a8-eef05bb12c80%2F35e83ff2-0cd5-453b-9a5f-162075dcffe0%2Ft3v8dks_processed.jpeg&w=3840&q=75)
Transcribed Image Text:This is a more difficult question relating to the AS curve. Read the textbook chapter and chapter
summary carefully. Identify the correct statement:
If there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a smaller
quantity of output when the price of the produced good is lower.
Olf there is diminishing marginal product of labor, the aggregate supply curve will slope downward.
Olf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a larger
quantity of output when the price of the produced good is higher.
O When the representative consumer exhibits diminishing marginal utility in the consumption of produced
goods, the aggregate demand curve will slope upward.
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