Diminishing marginal returns occur when
A) the average product of the variable input eventually diminishes.
B) the marginal product of an additional worker is less than the marginal product of the previous worker hired.
C) the firm hires cheap, less-skilled workers in place of expensive, high-skilled workers.
D) total product diminishes.
B
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As the wage rate increases, ________, assuming all else equal
A) quantity supplied of labor increases. B) demand for labor increases. C) quantity demanded of labor increases. D) supply of labor increases.
Consider Figure 8.9. Choosing a low price is:
A. a dominant strategy for David but not for Becky. B. a dominant strategy for Becky but not for David. C. a dominant strategy for both David and Becky. D. not a dominant strategy for either David or Becky.
Refer to the information provided in Figure 16.1 below to answer the question(s) that follow. 
Figure 16.1 Refer to Figure 16.1. The ________ imposed as a result of producing the market (unregulated) level of fertilizer is $300.
A. marginal private cost B. tax C. marginal social cost D. total damage
Assume a purely competitive decreasing-cost industry is initially in long-run equilibrium but then there is a decrease in consumer demand. After all economic adjustments to this new situation have taken place, product price will be:
A. Higher, but total output will be lower B. Lower, and total output will be lower C. Higher, and total output will be higher D. Lower, but total output will be higher