Diminishing marginal returns are the reason why some industries have positively-sloped long-run average cost curves
a. True.
b. False.
B
You might also like to view...
Consider the following:
(i) Define the term diminishing marginal returns to labor. When diminishing marginal returns to labor exist, what can be said about the firm's cost curves? (ii) Define the term decreasing returns to scale. When decreasing returns to scale exist, what can be said about the firm's cost curves?
The opportunity cost of a decision is measured in terms of
A) the next best thing given u
In Chapter 10, the variable N can be regarded as total population, workers, work-hours, or "effective" work-hours, all proxies for each other if they are assumed to grow at the same rate
To define (Y/N) as the standard of living, N is particularly regarded as A) total population. B) workers. C) work-hours. D) "effective" work-hours.
Without a central bank, such as the Federal Reserve System, banks, if left to themselves, are likely to
a. create insufficient money when the economy is at full employment b. create too much money when the economy is in a recession c. forego money creation opportunities when the economy is at full employment d. hold less deposits than socially desirable when the economy is at full employment e. hold more excess reserves than socially desirable when the economy is in a recession