The point of saturation occurs when a firm
A. has total returns equal to zero.
B. maximizes its total returns.
C. first encounters negative marginal product.
D. first experiences positive marginal product.
Answer: C
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In a sensitivity analysis, managers should change ________ variable(s) at a time to determine how sensitive the ________ value of the investment is to the different variables used in the calculations.
A) one; present B) all; present C) one; future D) all; future
The demand for a resource is derived from the demand for the final product it helps to produce
a. True b. False
The production possibilities frontier is useful for demonstrating both scarcity and productive inefficiency
a. True b. False
Approximately 50,000 luxury boats (priced $100,000 or more) are currently produced each year. Using the economic way of thinking, how much revenue would the government actually generate with a $10,000 excise tax on luxury boats?
a. $500 million b. less than $500 million c. more than $500 million d. approximately $5 billion