Comment on the problem with this statement: “Of course, there are diminishing marginal returns from adding more workers to a fixed quantity of plant and equipment because additional workers are not as good as initial workers.”
Please provide the best answer for the statement.
The law of diminishing returns assumes all units of variable inputs, which would be workers in this case, are of equal quality. Marginal product diminishes not because each additional worker who is hired is inferior to the previous worker, but because more workers are being used relative to the fixed plant and equipment that is available. Sunk costs should be disregarded in decision making.
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Which of the following would cause the dollar to appreciate?
A) an increase in the demand for imports from foreign countries B) an increase in the demand for dollars C) a decrease in the demand for dollars D) an increase in the supply of dollars
Refer to the above figure. The profit maximizing quantity for this firm is
A) zero. B) Q1. C) Q2. D) Q3.
A bank receives a demand deposit of $3,000 . The bank loans out $1,800 of this deposit and increases its excess reserves by $300 . What is the required reserve ratio?
a. 10% b. 30% c. 40% d. 60%
In general, the largest sources of revenue for state and local governments come from:
a. Sales taxes and property taxes b. Sales taxes and corporate taxes c. Property taxes and individual income taxes d. Individual income taxes and sales taxes