In the above table, between what two levels of output does one first observe the law of diminishing returns?
A) 0 and 1000
B) 1000 and 3000
C) 3000 and 4000
D) 4000 and 4500
C
You might also like to view...
Define real shocks, define nominal shocks, and give an example of each
What will be an ideal response?
For a household in a (c,c') graph, the optimal consumption bundle is
A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors.
In an industry, when the cost curve of a firm is upward sloping at low levels of output relative to the market, it implies:
a. the industry is characterized by constant returns to scale. b. the industry has a high degree of competition. c. not many firms can operate together in this industry. d. the firm can charge a price lower than competition and still cover its costs.
Using Figure 1.5 above, we know the production of 6 units of soda and 2 units of pizza is 
A. possible, but only if all resources were fully employed. B. undesirable. C. possible, but there would be unemployed resources. D. impossible because we either do not have the resources or the technology.