What is significant about the level of output at which marginal product begins to decline?

Select one:

a.It is the point at which diminishing returns begins.

b.It is the point at which the division of labour begins.

c.It is the point of minimum average cost.

d.It is the point of maximum average product.

Why does the demand curve slope downward?

Select one:

a.Since the marginal utility increases with increased consumption, people will be eager to buy more at lower prices.

b.Lower prices mean a lower consumer surplus which will encourage increased consumption.

c.Since total utility increases with increased consumption, a lower price is necessary to encourage increased production.

d.Since the marginal utility decreases with increased consumption, the price must fall in order to induce people to buy more.