The law of diminishing marginal product provides an explanation for why average total cost eventually increases as output is expanded in the short run
a. True
b. False
Indicate whether the statement is true or false
True
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According to the liquidity premium theory of the term structure, a steeply upward sloping yield curve indicates that short-term interest rates are expected to
A) rise in the future. B) remain unchanged in the future. C) decline moderately in the future. D) decline sharply in the future.
According to the classical model
A) long-term unemployment is unavoidable. B) unemployment is a temporary phenomenon. C) unemployment only exists during periods of war. D) the natural rate of unemployment is zero.
Which of the following events would cause a shift to the right in the supply curve?
(A) The manufacturer lowers the price of its candy bars. (B) The plant shuts down for several weeks because there's been a fire. (C) A candy bar manufacturer raises the price of its candy bars. (D) Upgrades to its mixing equipment allow the plant to make more bars.
When government revenue is less than government spending, the nation has a:
A. government budget surplus. B. trade deficit. C. trade surplus. D. government budget deficit.