Which of the following is NOT true when the firm experiences diminishing marginal product?
A. The total product is decreasing.
B. The marginal product of the previous worker is higher than the current worker.
C. The firm is operating in the short run.
D. The firm's total cost is increasing.
Answer: A
You might also like to view...
Variables that change before real GDP changes are measured by the:
a. personal income index. b. real GDP index. c. forecasting gauge. d. index of leading indicators.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.
According to economic theory, the democratic political processes tend to produce
A) unstable aggregate demand policies with a bias toward expansion. B) unstable aggregate demand policies with a bias toward contraction. C) stable aggregate demand policies, but only if economists are elected to office. D) stable aggregate demand policies that are in the best interests of the nation as a whole. E) economic policies that harm everybody.
Dan has a car valued at $10,000 that gives him a utility of 50 units. There is a 10 percent chance that he will have an accident that will make his car worthless, in which case his utility will be zero
His utility from a wealth of $7,000 is 45 units. The maximum amount Dan will be willing to pay for car insurance is A) $1,000. B) $3,000. C) $7,000. D) zero.