State the law of diminishing returns. How do diminishing returns differ from diseconomies of scale? Be sure to define diseconomies of scale in your answer
What will be an ideal response?
The law of diminishing returns states that at some point, adding more of a variable input to the same amount of a fixed input will eventually cause the marginal product of the variable input to decline. The law applies in the short run when there is at least one fixed factor of production. Diseconomies of scale applies in the long run when a firm is free to vary all of its inputs. Diseconomies of scale exist when a firm's long-run average cost rises as it increases output.
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The Delphi method is a
A) smoothing technique in forecasting. B) consensual forecast based on expert opinions. C) compound growth approach to forecasting. D) naïve forecasting approach.
Average total cost reveals how much total cost will change as the firm alters its level of production
a. True b. False Indicate whether the statement is true or false
Double taxation means that both
a. the profits of corporations and the dividends shareholders receive are taxed, which is not currently the case in the United States. b. the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in the U.S. c. wage income and employee benefits are taxed, which is not currently the case in the United States. d. wage income and employee benefits are taxed, which is currently the case in the United States.
If nominal GDP = $900 billion and the public holds $300 billion in M2, then the velocity of the M2 money supply is
A) 1. B) 2. C) 3. D) 4.