If a firm experiences diminishing returns its marginal product must be negative
Indicate whether the statement is true or false
FALSE
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Marginal cost is defined as
a. the additional cost attributable to the last unit produced. b. the change in fixed costs associated with the production of one more unit of output. c. the difference between total revenue and total cost. d. price times quantity.
Why does a change in GDP affect unit costs and the price level?
a. as GDP increases, productivity increases. b. as GDP increases the price of non-labor inputs increases and the nominal wage tends to increase. c. as GDP decreases, there are efficient gains d. as GDP increases, economies of scale allow for lower unit costs. e. as GDP increases the price of non-labor inputs decreases and the nominal wage tends to increase.
According to the adaptive rationality standard, individuals:
A. are irrational if they choose to have preferences that are not self-interested. B. might rationally choose to have preferences that are not self-interested. C. always behave according to their own narrow self-interest. D. are unable to choose what kind of preferences to have.
Reverse engineering is the process of a firm buying other firms' products and:
A. copying them within the limits of law. B. copying them unlawfully. C. selling them in the black market for an exorbitant price. D. selling them in the market for a cheaper price than those firms do.