Which of these is the best explanation of diminishing returns for physical capital?
What will be an ideal response?
Each unit of capital is less useful than the previous one
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Managers can increase firm profits by:
A) increasing revenue only. B) decreasing costs only. C) increasing revenue and decreasing costs. D) none of the above.
In the short run, monopolistically competitive firms:
A. can earn positive economic profits by acting like a monopolist. B. can earn positive economic profits by acting like a perfectly competitive firm. C. will earn zero economic profits by acting like a monopolist. D. will earn zero economic profits by acting like a perfectly competitive firm.
In the labor market, the income and substitution effects work in the same direction.
Answer the following statement true (T) or false (F)
A monopolistically competitive firm influences market price by virtue of its size.
Answer the following statement true (T) or false (F)