Bill lives in Montana and likes to grow zucchini. He applies fertilizer to his crops twice during the growing season and notices that the second layer of fertilizer increases his crop, but not as much as the first layer. What economic concept best explains this observation?
a. The law of diminishing marginal utility.
b. The law of diminishing returns.
c. Return equalization principle.
d. The principal-agent problem.
b
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Which nation achieved the ideal communist society as described by Marx?
If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent
A) your employer would have gained at your expense. B) your real wage will increase, but your nominal wage will decrease. C) the purchasing power of your wages will not change, since purchasing power is based on your nominal wage. D) the purchasing power of your real wages would be more than you anticipated.
Which of the following is true? a. Velocity is not constant over time
b. The best way to study economic activity is to start with the equation and then integrate the money supply and the volume of international trade. c. Control over the money supply implies that the Fed has precise control over real GDP. d. All of the above are true.
If the wage rate in a monopsonistic industry is $15, the marginal labor cost will be
a. $0 b. $1 c. $15 d. greater than $15 e. less than $15