According to the law of diminishing marginal product, if all the inputs to a firm are increased in equal proportions,
a. output will increase more than in proportion to the increase in the inputs
b. output will increase less than in proportion to the increase in the inputs.
c. output will increase exactly in proportion to the increase in the inputs.
d. The law of diminishing returns says nothing about what will happen to output when all inputs are increased in equal proportions.
d
You might also like to view...
Explain the "vicious-circle-of-poverty" hypothesis
What will be an ideal response?
Which of the following provide increased competition for public schools?
a. homeschooling b. charter schools c. vouchers d. all of the above
In economic terminology, a normal good is a good
A) on which a monetary value cannot be placed. B) that is liked only by normal people. C) for which demand increases when price increases. D) for which demand increases when income increases.
Table 10.1 shows the cash flows and discounted cash flows for three mutually exclusive projects available to a company. Assume an interest rate of 5%. Which project should the company choose if they want to recover their initial investment as soon as possible?
A. Project A
B. Project B
C. Project C
D. It cannot be determined from the information given.