The law of decreasing returns states that as a firm uses more of a _____
A) fixed input, with a given quantity of variable inputs, the marginal product of the fixed input eventually decreases.
B) variable input, total output will increase indefinitely.
C) variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases.
D) variable input, output will begin to fall immediately.
E) fixed input and a variable input, the marginal product of the fixed input and the marginal product of the variable input both decrease.
Answer: C) variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases.
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Based on the 'early incarnation' of the Phillips curve, explain what effect a decrease in the unemployment rate will have on the inflation rate
What will be an ideal response?
The Keynesian portion of the short-run aggregate supply (SRAS) curve
A. is vertical. B. slopes upward. C. slopes downward. D. is horizontal.
Using the information in Table 6.2, the inflation rate from 2015 to 2016 is about
A) 4 percent. B) 5 percent. C) 17 percent. D) 31 percent.
For a negative externality, the _________ than the costs imposed on society as a whole.
Fill in the blank(s) with the appropriate word(s)