In a simple lawn-mowing business where you have a push mower and labor as input, what would be the impact of adding an additional input in the form of a gas self-propelled mower (capital)?
A. Average product and marginal product would fall.
B. Average product and marginal product would rise.
C. Average product would rise, and marginal product would fall.
D. Average product would fall, and marginal product would rise.
Answer: C
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Refer to Table 2-6. Which of the following statements is true?
A) Lucy has a comparative advantage in making both products. B) Lucy has a comparative advantage in making tricycles and James in making wagons. C) James has a comparative advantage in making both products. D) Lucy has a comparative advantage in making wagons and James in making tricycles.
Refer to Figure 2.1. At point A, demand is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) unit elastic. D) elastic, but not infinitely elastic. E) infinitely elastic.
Refer to the above figure. The classical aggregate supply curve is represented by ________ and the Keynesian short-run aggregate supply curve is represented by ________
A) curve 2; curve 1 B) curve 2; curve 3 C) curve 3; curve 4 D) curve 2; curve 4
Deadweight loss is
A. the amount of taxes that consumers and monopolists pay. B. the price that consumers pay for a product in excess of the average cost of producing it. C. the loss of output when a perfectly competitive firm becomes a monopolist. D. a loss of benefit to consumers in a monopoly that no one else in society can obtain.