Marginal product eventually:
A. declines because some inputs are variable.
B. declines because some inputs are fixed.
C. increases because some inputs are fixed.
D. increases because some inputs are variable.
Answer: B
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The Department of Justice guidelines call for government intervention in mergers when the Herfindahl-Hirschman Index in that industry is
a. 0 b. less than 100 c. between 1,000 and 1,800 d. less than 1,800 e. more than 1,800
A country running a balance of payments surplus in a fixed exchange rate system may have to ____ its currency
a. depreciate b. devalue c. revalue d. appreciate
In recent years, wireless cellular telephones have been replacing land-line phone service. This is an example of
a. economies of scale. b. division of labor. c. creative destruction. d. entry barriers into a market.
Summing the value added of all firms yields the value of final goods and services produced because both measures:
A. are adjusted for population growth. B. use constant prices. C. exclude the value of intermediate goods and services. D. exclude the value of capital goods.