When a firm is experiencing diminishing returns:
A. average cost is always increasing.
B. average cost is always decreasing.
C. marginal costs are always less than average costs.
D. None of these
Answer: D
You might also like to view...
Suppose a major computer virus struck the nation's computers and all hard drives were erased. What would happen in the labor market?
a. The real wage would increase and so would employment. b. The real wage would not change, but employment would decrease. c. The real wage would increase and employment would decrease. d. The real wage would decrease and so would employment. e. The real wage would decrease and employment would increase.
Most residents of Los Angeles think sushi and sashimi are very similar foods. What effect will an increase in the price of sushi have on the demand curve for sashimi in Los Angeles?
a. there will be a movement down the sashimi demand curve b. the sashimi demand curve will not be affected c. there will be a movement up the sashimi demand curve d. the sashimi demand curve will shift to the right e. the sashimi demand curve will shift to the left
In the last few decades there has been little progress in lowering the barriers to international trade.
Answer the following statement true (T) or false (F)
When an input represents a larger proportion of a firm's total costs, then
A) demand for the input will tends to be less elastic. B) the input demand will not vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) demand for the input will tends to be more elastic.