Explain why the marginal cost of production must increase if the marginal product of a variable resource is decreasing
What will be an ideal response?
Consider a variable input such as labor. If the marginal product of labor is decreasing it means that the output produced by each additional unit of labor hired is smaller than previous units of labor. If all workers are paid the same wage, the marginal cost of additional output each worker produces depends on the worker's marginal product. If the marginal product falls then the marginal cost of that additional output must rise.
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Demand is price inelastic if a relatively ________ price increase leads to a relatively ________ in the quantity demanded
A) large; small increase B) small; large decrease C) large; small decrease D) small; large increase
If the purchasing power of the dollar is greater than the purchasing power of the euro, purchasing power parity predicts that the exchange rate will
A) not fluctuate and stay constant in the long run. B) increase if the exchange rate is greater than 1 euro per dollar. C) decrease if the exchange rate is less than 1 euro per dollar. D) be equal to the relative purchasing power across the currencies in the long run.
An unmarried couple holding joint title to their condominium constitutes a household
a. True b. False Indicate whether the statement is true or false
If the average annual rate of economic growth is 4? percent, approximately how long will it take for the? nation's per capita real GDP to? double?
What will be an ideal response?