The law of diminishing marginal product holds that as a variable input increases while other inputs are fixed, ______.
a. eventually the fixed inputs will increase at a rate equal to or below the variable increases
b. labor demanded will be high at both very low and very high outputs creating a U-
shaped curve
c. the marginal revenue product will eventually cause the labor demand curve to turn
upward
d. at some point the increase will lose its effectiveness, and additions to output will
decline
d. at some point the increase will lose its effectiveness, and additions to output will
decline
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In the diagram above, which figure(s) show(s) a direct relationship between the variables?
A) both A and C B) only D C) only A D) both B and C E) only B
Assume that an individual has to choose between two options: buying a mobile phone, or buying an iPod. The expected cost of buying a phone is $700 and the expected benefit is $900
The expected cost of buying an iPod is $300, and the expected benefit is $600. How does the individual arrive at the optimal choice if he implements: a) optimization in levels? b) optimization in differences?
If society leaves some of its resources unemployed, then it will be operating at a point:
a. beneath its production possibilities curve. b. at a corner of its production possibilities curve. c. anywhere along its production possibilities curve. d. outside of its production possibilities curve.
The Sherman Antitrust Act
a. was passed to encourage judicial leniency in the review of cooperative agreements. b. was concerned with self-interest dominated Nash equilibriums in prisoners' dilemma games. c. enhanced the ability to enforce cartel agreements. d. restricted the ability of competitors to engage in cooperative agreements.