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.

Economics

You might also like to view...

Structural deficit (surplus)

What will be an ideal response?

Economics

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.

Economics

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.

Economics

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

Economics