Which of the following best explains why increasing marginal costs of production arise?
A. Different commodities use inputs in different proportions.
B. All the factor inputs are not fully utilized in the production of different commodities.
C. Different consumers have different tastes and preference sets.
D. The factor endowments vary across countries.
Answer: A
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For a firm in a perfectly competitive industry, the demand curve for its own product is
A) horizontal. B) vertical. C) upward sloping. D) downward sloping.
If advertising makes demand of a product less elastic, it makes sense for a firm to
a. Decrease the price of the product b. Increase the price of the product c. Leave the price unchanged d. None of the above
Paine Pharmaceuticals produces medicines in the U.S. Its overseas sales
a. are an export of the U.S. and increase U.S. net exports. b. are an export of the U.S. and decrease U.S. net exports. c. are an import of the U.S. and increase U.S. net exports. d. are an import of the U.S. and decrease U.S. net exports.
Which of the following is an example of frictional unemployment?
A. A worker stays at home to take care of children. B. A worker can't find a job because she is skilled at running an obsolete machine. C. A student goes to school instead of working. D. A worker leaves one job and is temporarily unemployed before starting a new one.