The law of diminishing marginal returns says that
a. total product will eventually remain constant as more of an input is added to production
b. total revenue decreases as output increases, holding technology fixed
c. marginal product eventually falls as more of an input is employed
d. the quantity demanded of a good decreases as its price rises
e. utility falls as more of a good is consumed
C
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Suppose the demand for hot dogs decreases. In the short run, firms that produce hot dogs will experience a fall in prices, which will induce them to
A) decrease production and reduce the number of workers. B) decrease production and increase the number of workers. C) increase production and reduce the number of workers. D) increase production and increase the number of workers.
U.S. households headed by ________ are the most likely to be poor.
A. Hispanic males B. single males C. those under age 18 D. single women
The aggregate supply curve shows
A) the total of all planned production for an economy. B) that real GDP can only increase when the price level increases. C) what an economy can produce if resource prices are constant. D) the various quantities of goods consumers will purchase.
Table 7-5 Stereos produced 0 1 2 3 4 5 6 Total cost (in $) 200 325 410 475 550 660 825 Table 7-5 shows short-run total cost figures for a stereo manufacturer. At what output level does short-run average variable cost reach a minimum?
A. 2 B. 3 C. 4 D. 5