The law of diminishing marginal returns states
A) that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline.
B) that at some point, adding more of a fixed input to a given amount of variable inputs will cause the marginal product of the variable input to decline.
C) that in the presence of a fixed factor, at some point average product of labor starts to fall as more and more variable inputs are added.
D) average total costs of production initially fall and after some point starts to rise at a decreasing rate as output increases.
A
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Technological advances generally result in
A) increased average number of hours worked per day. B) increased infant mortality rates. C) decreased incomes. D) increased life expectancy.
Barton & Matthews Corp, a law firm, announces its acquisition of Fronton Corp Which of the following is likely to occur as a result of this acquisition? a. The value of the Herfindahl-Hirschman Index for the legal services industry will decrease. b. The value of the Herfindahl-Hirschman Index for the legal services industry will increase. c. The market share of each firm in the legal services
industry will increase. d. The market share of each firm in the legal services industry will decrease.
Regulating a monopolistically competitive market:
A. is easier than regulating a monopoly. B. is very common in the U.S. today. C. has grown over the past 50 years. D. is more difficult than regulating a monopoly.
Which of the following is most likely to lead to demand-side inflation?
A. An increase in government spending B. A decrease in taxes C. An increase in the money supply D. All of these responses are correct.