If equal amounts of a variable input are sequentially added to the fixed input in a typical production function,
A. the additions to output will be constant.
B. increments to output will increase indefinitely.
C. the increments to output will decrease first and then increase.
D. increments to output will first increase at an increasing rate and then at a decreasing rate.
Answer: D
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A firm will choose to minimize their costs subject to their ______________
Fill in the blank(s) with the appropriate word(s).
In an article regarding Bangladesh's economy, the author suggests that the government give tax breaks on investment dollars, research and development, and donations to educational institutions. Suppose the multiplier in Bangladesh is 2. As a result of enacting the proposed policies, which of the following describe possible outcomes in the short run?
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