Refer to Figure 7.2.Curve A must be MP_L and Curve B must be AP_L because: A) the two curves intersect at the maximum of Curve A. B) everywhere that Curve A is positively-sloped, Curve B is positively-sloped as well, and everywhere that Curve A is negatively-sloped, Curve B is negatively-sloped as well. C) when Curve A lies above Curve B, Curve B is rising, and when Curve A lies below Curve B, Curve B is falling. D) when Curve B lies above Curve A, Curve A is rising, and when Curve B lies below Curve A, Curve A is falling.

Question

Quizplus · Accepted Answer

The slopes of the two curves must be opposite at all points in order for them to intersect at the maximum of Curve A. Therefore, when Curve A is positively-sloped, Curve B must be negatively-sloped, and vice versa. This is consistent with choice B. Choices A, C, and D are not necessarily true based on the given information.