If a firm's use of labor obeys the law of diminishing returns, then:
a. it does not have enough time to hire or fire workers.
b. doubling the number of workers causes the firm's output to also double.
c. its marginal costs must be falling.
d. hiring additional workers adds less and less additional output.
d
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What is government failure?
What will be an ideal response?
Moody's Investors Service is able to make a profit because
A) most investors are irrational. B) of the existence of adverse selection problems. C) fluctuations in interest rates make default risk on corporate bonds difficult to gauge. D) small investors like the mutual funds they sell.
If the economy spends 80 percent of any increase in real GDP, then an increase in investment of $1 billion would result ultimately in an increase in real GDP of:
a. $0. b. $0.8 billion. c. $1.0 billion. d. $5.0 billion.
If the price elasticity of demand for U.S. automobiles is higher in Mexico than it is in China, and transport costs are zero, a price-discriminating monopolist would charge
A. the same price for autos in China as in Mexico. B. a lower price for autos in China than in Mexico. C. a less profitable price for autos in China than in Mexico. D. a higher price for autos in China than in Mexico.