Which one of the statements is true?
a. Diminishing returns is a long-run concept while decreasing returns to scale is a short-run concept
b. Diminishing returns is a short-run concept while decreasing returns to scale is a long-run concept.
c. Diminishing returns is a both short and long-run concept while decreasing returns to scale is a short-run concept.
d. Diminishing returns is a long-run concept while decreasing returns to scale is a short and long-run concept.
b
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How, other than by adjusting price, do firms in monopolistic competition compete?
What will be an ideal response?
The production function is concave in capital because
A) the contribution to production of each additional unit of capital decreases. B) the marginal product of capital is increasing. C) the marginal product of labor is decreasing. D) the cost of loans increases with their quantity.
A focus of antitrust activities is
A) entry blocking. B) price fixing. C) the buying of patents. D) rent-seeking by lobbyists.
Professor Weldon offers to pay his graduate students $20 an hour to grade essay papers. Six students accept the offer. When he raises the wage rate to $25, all ten of his students accept the offer. At least within the wage rate range $20 to $25, the students'
a. supply curve of labor is downward sloping b. demand curve for labor is downward sloping c. supply curve of labor is upward sloping d. demand curve for labor is downward sloping e. supply curve of labor is backward bending