The negative slope of the value of marginal product curve is most easily explained by
a. tight labor markets.
b. a surplus of workers.
c. diminishing marginal product.
d. diminishing marginal cost.
c
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At a consumer optimum involving goods X and Y, the marginal utility of good X equals 5 utils. The price of good Y is three times the price of good X. What is the marginal utility of good Y?
A. 5. B. 3. C. 15. D. There is not enough information.
How have government inefficiencies contributed to the creation of dead capital in the world's developing nations?
What will be an ideal response?
If the French government increases its expenditures and reduces taxes, then France's interest rate
a. and its exchange rate rise. b. rises and its exchange rate falls. c. falls and its exchange rate rises. d. and its exchange rate fall.
The law of diminishing marginal returns
A) results in average total cost (ATC) and marginal cost (MC) curves eventually increasing at an increasing rate. B) results in MC but not ATC curves eventually increasing at an increasing rate. C) causes average fixed costs to decline continuously as output increases. D) causes the difference between average total cost and average variable cost to shrink as output increases.