Increasing marginal returns means that as the firm expands its output, its
A) long-run average total cost increases.
B) long-run average total cost decreases.
C) short-run average total cost increases.
D) short-run average total cost decreases.
D
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The distribution of U.S. income is not bell-shaped because
A) there are more households with incomes below the mean income than above the mean income. B) there are more households with incomes above the mean income than below the mean income. C) the mode income equals the mean income. D) the income distribution is bell shaped.
What is the key proposition of new growth theory that makes economic growth persist?
What will be an ideal response?
Refer to the figure above. This country has comparative advantage in
A) X. B) Y. C) both X and Y. D) Can't tell without more information.
Suppose a nation reduced taxes by $20 billion. The direct change in the monetary base would be:
a. Equal to +$20 billion because the government pumps new money into the economy when it lowers taxes. b. Greater than +$20 billion because the M2 money multiplier would inflate the $20 billion of new monetary base. c. Equal to $0. d. Equal to $20 billion times the reserve ratio on checking accounts. e. Less than $20 billion because some of the newly created funds would leak into the system in the form of currency in circulation.