When the law of diminishing returns takes effect
A) firms must add increasingly more input if they are to maintain the same extra amount of output.
B) firms must add decreasingly more input if they are to maintain the same extra amount of output.
C) more input must be added in order to increase its output.
D) a firm must always try to add the same amount of input to the production process.
A
You might also like to view...
The best that this firm in the above graph can do is
A. maximize profits.
B. break-even.
C. minimize profits.
D. make a small profit.
If a 10 percent increase in income results in an 8 percent increase in the quantity demanded of a good, the income elasticity of demand equals ________ and the good is ________ good
A) 0.80; an inferior B) 1.2; a normal C) 0.80; a normal D) -1.2; an inferior
Proponents of the new growth theory argue that which of the following is a determinant of economic growth?
A. The proportion of income that goes into research and development B. An effective system of patent protection C. The quality and size of the nation's human capital D. All of these
Which of the following will lead to an increase in the demand for loanable funds in the US?
a. decrease in the real interest rate in the US b. increase in household saving c. an increase in US government borrowing d. an increase in the supply of loanable funds in other countries e. decrease in the supply of loanable funds in the US