The law of diminishing marginal productivity states that
a. As you expand output, your marginal productivity eventually increases
b. As you expand output, your marginal productivity eventually declines
c. As you expand output, the total product eventually increases
d. None of the above
b
You might also like to view...
During the 1870s and 1880s, which technological innovation was NOT introduced?
a. the roller mill to process oatmeal b. steel-bottomed stills c. long-distance pipelines d. the typewriter e. All of the above were introduced.
A competitive firm currently produces and sells 500 units of output. Its total revenue is $3,500; the marginal cost of producing the 500th unit of output is $5.75; and the average total cost of producing the 500th unit of output is $4.00 . Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?
Refer to the above graph for a private closed economy. If the consumption schedule shifts up by $50 B at all levels of income or output, then the equilibrium GDP will increase to:
A. $550 B
B. $300 B
C. $600 B
D. $150 B
Total planned expenditure is composed as
a. planned investment. b. planned government spending and taxes. c. total investment, total consumption, and government spending. d. planned investment, planned government spending, and planned taxes.