When the marginal product of labor diminishes,
a. average fixed cost rises.
b. average variable cost is constant.
c. marginal cost rises.
d. average total cost must rise.
e. total cost rises at a diminishing rate.
C
You might also like to view...
Compared to a proprietorship, a disadvantage of a partnership is
A) that profits are taxed twice. B) that it is harder to keep the firm going after the death of an owner. C) unlimited liability. D) that potential liability to each partner is greater.
____ occurs whenever a third party receives or bears costs arising from an economic transaction in which the individual (or group) is not a direct participant
a. Pecuniary benefits and costs b. Externalities c. Intangibles d. Monopoly costs and benefits e. none of the above
Cartels:
A. are usually illegal. B. can effectively sustain large profits in the long run. C. can act as if they are a single monopoly. D. All of these statements are true.
Most innovations come from just a few large industries.
Answer the following statement true (T) or false (F)