In the long run, diminishing returns would:
A. not exist because no input is held constant.
B. not exist because all inputs are held constant.
C. still exist at a lesser degree because inputs are allowed to vary.
D. exist at a greater degree, because all inputs are allowed to vary.
Answer: A
You might also like to view...
There are a number of reasons why labor supply curves will shift in a particular industry. Which one of the following is NOT one of them?
A) Changes in working conditions in an industry affect the labor supply curve. B) job flexibility that determines the position of the labor supply curve C) There is a change in the market wage rate. D) Taxes on labor affect the labor supply curve.
A firm sees its marginal revenue increase by $20 and marginal cost increase by $15 when it produces its 1000th product. This implies
a. the production of the 1000th unit of output increases the firm's profit by $5. b. The firm is past its profit maximizing output c. We cannot say much on the profitability of the firm d. Producing the 1000th item will in fact decrease the overall firm's profits.
In order for a natural monopoly to develop, it
A. is important that the firm be very large. B. is important that the firm prices its product below cost. C. is not the absolute size of the firm but its size relative to the total market demand that is important. D. must be in the presence of government intervention.
Of the curves displayed in the graph shown, graph B is most like to be the:
A. MC curve
B. AVC curve
C. AFC curve
D. ATC curve.