For a particular production function, over the range of output where marginal product rises as units of the variable input are added to the fixed input, marginal cost will be:
A) increasing.
B) constant.
C) decreasing.
D) cannot be determined without additional information.
C
You might also like to view...
Which of the following is most likely produced in a monopolistically competitive market?
a. soybeans b. autos c. fast food d. oil e. local phone service
Which of the following is not true regarding the argument for protection as a way of maintaining jobs and wage levels?
a. Wages may be only a small fraction of total production costs. b. High wages do not necessarily imply high labor costs when productivity is taken into account. c. U.S. workers are among the most productive in the world partly because they are well educated and trained compared to other countries. d. U.S. workers are highly productive partly because they are provided with abundant supplies of machines and physical capital. e. It is not possible that the U.S. wages, even when supported by high U.S. output per worker, can render U.S. products competitive with low-wage countries.
Periods during which real GDP rises are called recessions
a. True b. False Indicate whether the statement is true or false
Which of the following markets impose deadweight losses on society? (i) perfect competition (ii) monopolistic competition (iii) monopoly
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i) only