Which of the following explains most accurately why the firm's short-run marginal cost curve will eventually rise?
a. As more of the variable factor is used, its price will rise.
b. When diminishing marginal returns set in, it will take ever-larger quantities of the variable resources to produce an additional unit of output.
c. As the variable factor is used more intensely, its marginal product will rise, causing an increase in marginal costs.
d. As the size of the firm increases, the operational efficiency of the firm declines, causing an increase in marginal costs.
b
You might also like to view...
One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Calls made by the fundraisers will tend to be:
A. clustered near 5:00 p.m. B. clustered near 7:00 p.m. C. clustered near 6:00 p.m. D. evenly distributed throughout the evening.
Countries with small amounts of capital per worker tend to have ________ levels of real GDP per person and ________ levels of average labor productivity.
A. high; high B. low; average C. low; low D. high; low
The demand for money curve shifts rightward if
A) the price level increases. B) real GDP increases. C) the nominal interest rate increases. D) the real interest rate decreases.
The current U.S. income tax structure has the highest marginal tax rate in U.S. history for individuals earning the highest incomes
Indicate whether the statement is true or false