The law of diminishing marginal returns is the same as increasing returns to scale
a. True
b. False
Indicate whether the statement is true or false
False
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If there is a decline in the price of milk, an input in the production of ice cream, then there will be a(n)
A) decrease in the supply of ice cream and a leftward shift of the supply curve. B) decrease in the quantity of ice cream supplied and a movement up along the supply curve. C) increase in the supply of ice cream and a rightward shift of the supply curve. D) increase in the quantity of ice cream supplied and a movement down along the supply curve.
If demand increases and supply decreases,
a. equilibrium price will fall and equilibrium quantity will rise b. equilibrium price and quantity will both rise c. equilibrium quantity will rise; equilibrium price will either rise or fall d. equilibrium price will fall; equilibrium quantity will either rise or fall e. equilibrium price will rise; equilibrium quantity will either rise, fall, or remain unchanged
Refer to the above figure. A price ceiling has been set at P1, and a black market has opened. The equilibrium black market price will be
A. below P1. B. between P1 and P3. C. P2. D. above P3.
Sunk costs are:
A. costs that have been incurred and cannot be recovered. B. costs that are upfront on a project and can be pulled out if the business goes under. C. the cost of recovering lost expenditures. D. explicit costs that will incur large implicit costs to recoup or recover.