The manufacturing unit of a local LED bulb producing company reports a daily output of 450 bulbs with 50 units of labor. When the 51st worker is hired, production increases to 475 bulbs, and when the 52nd worker is hired, production increases to 490 bulbs. This is an example of:
a. a deadweight loss
b. decreasing returns to scale.
c. diminishing marginal returns.
d. a decrease in labor demand.
c
You might also like to view...
To avoid an increase in the local property tax, Sullivan County, New York, proposed a 2 percent hotel tax, which presumably would be passed on to tourists. The hotel industry argued that the tax would hurt hotel business. They are really arguing that
A. tourist and convention demand is inelastic, so hotel bookings will decline. B. tourist and convention demand is very elastic, so hotel bookings will decline. C. they would prefer a property tax increase instead. D. it is unfair to tax people who do not live in the area.
Which of the following is NOT a generally accepted measure of the riskiness of an investment?
A) Standard deviation B) Expected value C) Variance D) none of the above
The question of whether the government should intervene at all in economic matters is entirely political
a. True b. False Indicate whether the statement is true or false
According to purchasing-power parity, if prices in the United States increase by a larger percentage than prices in the United Kingdom, then the
a. real exchange rate rises. b. nominal exchange rate rises. c. real exchange rate falls. d. nominal exchange rate falls.