The law of diminishing returns applies to
A) the short run only.
B) the long run only.
C) both the short and the long run.
D) neither the short nor the long run.
E) all inputs, with no reference to the time period.
A
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Explain the relationship among the capital stock, gross investment, net investment, and depreciation
What will be an ideal response?
If the price level increases, we would expect consumers to
a. raise their consumption functions. b. move downward along their consumption functions. c. lower their consumption functions. d. move upward along their consumption functions.
Goods X and Y are complementary goods. A decrease in price of good X has occurred. In the market for good Y, this will lead to
A. an increase in price and a decrease in quantity. B. an increase in price and an increase in quantity. C. a decrease in price and a decrease in quantity. D. a decrease in price and an increase in quantity.
Producer surplus is equal to the area
A) under the demand curve and above the supply curve. B) above the supply curve and below the price line. C) under the supply curve. D) under the demand curve and above the price line.