What is the relationship between the marginal cost curve and marginal product? Explain
What will be an ideal response?
The short-run cost curve is a reflection of the law of diminishing marginal product. Graphically, the marginal cost curve looks like the inverse of marginal physical product of a variable input. As long as marginal product rises, marginal costs decline. At the point at which marginal product begins to decline, marginal costs begin to rise.
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In the mid-1970s, changes in oil prices greatly affected U.S. inflation. When oil prices rose, the U.S. would experience ________.
A. cost-push inflation and falling output B. demand-pull inflation and falling output C. cost-push inflation and rising output D. demand-pull inflation and rising output
People know that the inflation rate will decrease from 7 percent to 3 percent. As a result
A) the nominal interest rate falls by 4 percentage points. B) the nominal interest rate is constant. C) the nominal interest rate rises by 4 percentage points. D) the nominal interest rate equals 3 percent.
Workforce quality can be improved by
a. years of education. b. on-the-job training. c. workplace learning. d. all of the above.
Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster
a. True b. False Indicate whether the statement is true or false