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

Economics

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A) one; present B) all; present C) one; future D) all; future

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The demand for a resource is derived from the demand for the final product it helps to produce

a. True b. False

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The production possibilities frontier is useful for demonstrating both scarcity and productive inefficiency

a. True b. False

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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

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