For a perfectly competitive industry, diminishing marginal returns
A. occur only in the long run.
B. occur in both the short run and in the long run.
C. occur only in the short run.
D. Diminishing marginal returns do not occur in perfectly competitive industries.
Answer: C
You might also like to view...
A lack of understanding regarding the current state of the economy creates:
A. an information lag. B. a direction lag. C. a formulation lag. D. an implementation lag.
A luxury good has
A) a negative income elasticity. B) a cross elasticity of one. C) a very high income elasticity. D) a negative price elasticity.
If the reserve requirement were cut in half, the banking system’s ability to extend loans would be
a. increased by 50 percent. b. reduced by 100 percent. c. increased by 25 percent. d. nearly doubled.
Indifference curve analysis:
A. presumes, as does utility analysis, that satisfaction is numerically measurable. B. presumes, unlike utility analysis, that satisfaction is numerically measurable. C. presumes only that the consumer can say one combination of two goods yields more or less utility than some other combination. D. is in conflict with the idea of a downsloping demand curve.