What is the law of diminishing marginal product? Is it a realistic concept for describing the real world? Explain
What will be an ideal response?
The law of diminishing marginal product is the observation that after some point, successive equal-sized increases in a variable input added to fixed inputs will result in smaller increases in output. This is a realistic concept because without diminishing marginal product, firms will continue to, say, hire additional workers without adding more machines or office space. This is not what we commonly see in the world.
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The Federal Open Market Committee (FOMC) is composed of
A) representatives from the governors of all 50 states. B) Presidents of 5 Federal Reserve regional banks and the Board of Governors. C) the 12 Presidents of the Federal Reserve regional banks. D) the Board of Governors, the Vice-President of the United States, and the Secretary of Treasury for the United States.
"If Ivan says he is indifferent between the consumption of a new pair of jeans or a set of earrings, he means that he does not want either product." Is the previous analysis CORRECT? Explain your answer
What will be an ideal response?
Two farmers, A and B, each apply 100 tons of manure on their fields. To reduce manure runoff, the government has decided to require a permit for each ton of manure applied. The government gives each farmer 50 tradeable permits. Farmer A incurs losses of $25 for each ton of manure he does not apply, and Farmer B incurs losses of $50 for each ton of manure he does not apply. After permit trading,
we would expect that a. farmer A will no longer apply manure, and farmer B will not reduce his manure application at all. b. farmer B will no longer apply manure, and farmer A will not reduce his manure application at all. c. farmer A and B will each apply 50 tons of manure. d. farmer A will apply 25 tons of manure, and farmer B will apply 50 tons of manure.
The country with the highest child poverty rate in the industrial world is __________.
Fill in the blank(s) with the appropriate word(s).