As successive equal increases in a variable factor of production are added to fixed factors of production, there will be a point beyond which the extra product that can be attributed to each additional unit of the variable factor of production will
decline. This is known as the law of
A) diminishing total product.
B) diminishing average product.
C) diminishing marginal product.
D) decreasing product.
Answer: C
You might also like to view...
If the GDP price index rises from 100 to 110 to 115 over three consecutive years, it can be concluded that the inflation rate is decreasing
a. True b. False Indicate whether the statement is true or false
Economics is primarily the study of...
What will be an ideal response?
Build-Right Concrete Products produces specialty cement used in construction of highways. Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form:Q = aPbMc
where Q = yards of cement demanded monthly, P = the price of Build-Right's cement per yard, M = state tax revenues per capita, and PR = the price of asphalt per yard. The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation. The estimation results are presented below:
height="198" width="577" />Given the above, at the 1 percent level of significance, the number of degrees of freedom for a t-test is ________, and the critical value of the t-statistic is ________. Only parameter estimate(s) ________ is (are) NOT statistically significant at the 1 percent level of significance. A. 34; 2.042; c? B. 34; 2.042; a? and c? C. 30; 2.457; a? D. 30; 2.750; a?
Which of the following best exemplifies the relationship between a capital good and a consumer good or service?
a. A smartphone and an earplug b. A brand new Dell computer and printer c. A Caterpillar earth-moving front loader and its operator d. A commercial baking oven and loaves of bread