If, as a result of doubling all its inputs, a firm can more than double its output, the firm's production function exhibits
a. constant returns to scale.
b. increasing returns to scale.
c. decreasing returns to scale.
d. increasing marginal productivity to at least one input.
b
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Predicting business cycles is difficult because
A) they are very persistent. B) the weather changes unpredictably. C) statistics lie. D) their frequency is irregular.
If the market price is above a firm's average cost at the quantity produced
A) the firm operates and makes a profit. B) the firm operates and make zero economic profit. C) the market price of the firm's inputs will rise. D) total profit is maximized.
Exploitation due to a single buyer in the input market is known as
A) monopoly exploitation. B) monopsonistic exploitation. C) Marxian exploitation. D) the result of closed shops.
If an individual pays an additional $0.30 in taxes as a result of a $1.00 increase in income, then that individual must have a(n) __________ tax rate of 30 percent
A) average B) fixed C) total D) marginal