Which of the following statements is true?
a. The law of diminishing returns states that beyond some point the marginal product of a variable resource continues to rise.
b. The marginal product is the change in total output by adding one additional unit of a fixed input.
c. Fixed costs are costs which vary with the output level.
d. When marginal productivity of a variable input is falling then marginal costs of production must be rising.
e. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.
d
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A command-and-control approach to environmental policy
a. requires that the least amount of resources be used to achieve an objective b. uses incentives to encourage pollution reduction c. uses limits or restrictions to directly regulate polluters d. is rarely used by governments in the United States and other nations
What is a black market and how does it influence the market for rental housing if a rent ceiling creates a housing shortage? What determines the level of the black market rent?
What will be an ideal response?
By 2015, spending on federal health care programs such as Medicare and Medicaid had grown to 6 percent of GDP
Indicate whether the statement is true or false
The text compares two studies on the profitability of slavery: one by Phillips and the other by Conrad and Meyer. The main reason for the difference in their results is:
a. Phillips failed to account for the effect of productivity gains in the concerned period. b. Conrad and Meyer had better data on slave prices. c. Conrad and Meyer used data from both northern and southern farms. d. Phillips assumed that cotton prices were falling during the antebellum period.