The situation pictured in Figure 6.2
A) is one of increasing marginal returns to labor.
B) is one of increasing marginal returns to capital.
C) is consistent with diminishing marginal product.
D) contradicts the law of diminishing marginal product.
E) shows decreasing returns to scale.
C
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Gil can consume either pens or milkshakes. Both pens and milkshakes sell for $1. Gil finds that when his income is spent, his marginal utility of pens will be 10 while his marginal utility of milkshakes will be 8
Gil could increase his utility without violating his budget by consuming A) more pens and fewer milkshakes. B) more pens and more milkshakes. C) fewer pens and fewer milkshakes. D) fewer pens and more milkshakes.
An explanation for the low saving rate in the United States consistent with the demonstration effect includes:
A. highly-developed financial systems making it easy to buy homes with down payments under 15 percent. B. households spending beyond their means to keep up with community standards. C. large and persistent capital gains. D. relatively generous government assistance for the elderly and large down payments required for home purchases.
In the short run, the price at which a firm's total revenues equal its total costs is
A. a no return price. B. the short-run shutdown point. C. the short-run break-even point. D. a point of positive profits.
At the midpoint of a linear demand curve, the price elasticity of demand is:
A) equal to zero. B) between zero and one. C) equal to one. D) greater than one.