All of the above explain the existence of firms. Managers of corporations must be efficient because The limited liability enjoyed by stockholders makes it easier for corporations to compete for investment funds. The principal-agent problem does not exist in the corporate world. Stock markets provide outsiders with the ability to replacement inefficient management through hostile takeovers. All of the above explain the efficiency of corporate management.
Marginal product equals average product.
Marginal product is greater than average product. The costs of production when the firm cannot alter its usage of at least one input. The minimum average cost of producing each level of output when all inputs are variable. The costs of production the firm will face as technology changes. None of the above.