If diminishing marginal returns have already set in for The Picture Perfect Framing Store and the marginal product of the fifth picture framer is 20, then the marginal product of the sixth picture framer must be

A. negative.
B. zero.
C. less than 20.
D. greater than 20.


Answer: C

Economics

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Which of the following is not a negative externality?

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In an oligopoly, when the quantity effect outweighs the price effect:

A. keeping output constant and raising price will increase the firm's profits. B. an increase in output may increase the firm's profits. C. a decrease in output may increase the firm's profits. D. keeping output constant and lowering price will increase the firm's profits.

Economics

The percentage share of income of the bottom quintile on curve X is


A. 0.
B. 5.
C. 10.
D. 15.

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The Clayton Act is an antitrust law that was passed to

A) outlaw monopolization. B) address loopholes in the Sherman Act. C) prohibit charging buyers different prices if the result would reduce competition. D) toughen restrictions on mergers by prohibiting mergers that reduce competition.

Economics