Diminishing marginal returns to labor imply that
a. fixed costs will remain constant as the firm's output increases.
b. the firm's short-run marginal cost curve will be upward sloping.
c. the firm enjoys increasing returns to scale in the long run.
d. the firm will be unable to earn short-run economic profit.
b. the firm's short-run marginal cost curve will be upward sloping.
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Structural deficit (surplus)
What will be an ideal response?
Producer surplus directly measures
a. the well-being of society as a whole. b. the well-being of buyers and sellers. c. the well-being of sellers. d. sellers' willingness to sell.
People who focus on the "competitiveness" of the United States are
A. treating the United States as if it is a business firm. B. also focusing on the importance of education. C. correctly recognizing that trade is a zero-sum game. D. focusing on the right thing if the United States is to stay a leading economic power.
An increase in aggregate demand when the economy is operating at ________ is likely to result in an increase in the overall price level and ________ in output.
A. low levels of output; no change B. high levels of output; a large increase C. high levels of output; little or no increase D. low levels of output; a decrease