Which of the following best describes the law of diminishing returns?
a. The principle that beyond some point the marginal product decreases as additional units of a variable factor (ex: labor) are added to a fixed factor (ex: a restaurant kitchen).
b. The concept that as a person consumes more and more of a good, such as pizza slices, that the marginal utility from each additional slice will decline.
c. The empirical fact that the profitability of firms declines in the long run due to increasing competition.
d. None of the above.
a
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Suppose a single-price monopoly sells 3 units of a good at $20 per unit. If the monopoly sells 4 units, the total revenue increases to $72. What price is being charged for 4 units?
A) $52 each B) $18 each C) $60 each D) $12 each E) $20 each
What is opportunity cost?
What will be an ideal response?
An example of a standardized good is:
A. grain. B. granola cereal. C. hamburgers. D. digital cameras.
When you choose the solution that has the greatest benefit for you
a. implicit favorite model b. bounded rationality model c. econological model d. none of the above