Which of the following statements describes the presence of diminishing returns? All else equal,
a. Marginal product curve is constant
b. Marginal product curve is falling and negative
c. Marginal product curve is positive and rising
d. Marginal product curve is positive and falling
d
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Refer to Figure 4-5. What is the area that represents the producer surplus after the imposition of the ceiling?
A) D + F + G B) F C) F + G D) A + B + D + F + G
When the snob effect exists, a change in price is likely to
A) change total revenue less than if there were no network externalities. B) change total revenue more than if there were no network externalities. C) change total revenue the same amount as if there were no network externalities. D) not change total revenue at all.
Which of the following factors would be most likely to encourage capital formation in a less-developed nation?
a. high and variable rates of inflation b. tariffs and quotas that restrict international trade c. a legal system that provides for secure property rights and even-handed enforcement of contracts d. high marginal tax rates
One plausible explanation for the large amount of U.S. currency outstanding is that many dollars are held abroad
a. True b. False Indicate whether the statement is true or false