If the price of labor is constant and a firm experiences diminishing marginal product, then its
A. marginal costs increase.
B. total costs decrease.
C. marginal costs decrease.
D. fixed costs increase.
Answer: A
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The Law of Increasing Cost is based upon which of the following?
A. If units of a resource are added to a fixed proportion of other resources, eventually marginal output will decline. B. Economies of scale eventually outweigh diseconomies of scale. C. Resources become more suitable for use in the production process as the output of one good expands. D. All of the choices are true.
People tend to hold less money as
A. credit availability rises. B. the average price level falls. C. incomes fall. D. All of the choices are correct.
The Federal Open Market Committee began operating in:
A. 1914. B. 1929. C. 1936. D. 1913.
The invention of the steam engine ushered in the following developments, except:
A. Mass-production in industrial factories, for the first time B. Much easier and cheaper transportation of resources and products C. A sharp reduction in trade as many societies specialized D. Major population shifts, from farms to towns and cities