Diminishing marginal product occurs when
a. the marginal product of an input increases as the quantity of the input increases.
b. the marginal product of an input decreases as the quantity of the input increases.
c. total output increases as the quantity of an input increases.
d. total output decreases as the quantity of an input increases.
b
You might also like to view...
If the nominal exchange rate were to be expressed as the number of units of domestic currency per unit of foreign currency, and that rate decreases, then the domestic currency has:
A. become overvalued. B. become undervalued. C. appreciated. D. depreciated.
Macrosoft is implementing a new research and design shop to integrate PC manufacturers' requirements for new computer software with Macrosoft's operating system. The process of integration usually requires five different kinds of software modification tasks, plus decisions about integrating these modifications. Discuss the problems of designing the new jobs in this research and design shop.
What will be an ideal response?
The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month, what is true?
A) The quantity of town homes demanded decreases to 100,000. B) Black market rents might be as high as $1,300 per month. C) The quantity of town homes supplied increases to 250,000. D) More town homes are rented after the rent ceiling that before. E) The quantity demanded of town homes is less than the quantity supplied.
If you accept the Phillips curve, then it is possible to attain zero unemployment and zero inflation at the same time
Indicate whether the statement is true or false