The law of diminishing returns states that as
A) the size of a plant increases, the firm's fixed cost decreases.
B) the size of a plant increases, the firm's fixed cost increases.
C) a firm uses more of a variable input, given the quantity of fixed inputs, the marginal product of the variable input eventually diminishes.
D) a firm uses more of a variable input, given the quantity of fixed inputs, the firm's average total cost will decrease eventually.
C
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The prime rate is the interest rate at which banks can borrow from the Fed
Indicate whether the statement is true or false
A marginal propensity to save of 0.20 results in a multiplier of
A) 2. B) 5. C) 1.25. D) 8. E) 1.
Esmerelda worked part-time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?
a. Esmerelda but not Tabitha b. Tabitha but not Esmerelda c. both Esmerelda and Tabitha d. neither Esmerelda nor Tabitha
The additional cost associated with the hiring of one more unit of labor is known as the
A) marginal physical product of labor. B) marginal revenue product of labor. C) marginal factor cost of labor. D) marginal utility of labor.