Which of the following explains most accurately why the firm's short-run marginal cost curve will eventually rise?
A. As more of the variable factor is used, the higher the price of that factor.
B. When diminishing marginal returns set in, it will take ever-larger quantities of the variable resources to produce an additional unit of output.
C. As the variable factor is used more intensely, its marginal product will rise, causing an increase in marginal costs.
D. As the size of the firm increases, the operational efficiency of the firm declines, causing an increase in marginal costs.
Answer: B
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One possible reason for slower growth in developing and transition countries is
A) capital may not be directed to its most productive use. B) strict accounting standards are too stringent for the banks to meet. C) the weak link between government and financial intermediaries. D) the lack of adverse selection and moral hazard problems.
The saying "what's that got to do with the price of tea?" reflects
A) two markets where general equilibrium analysis would be most useful. B) two markets where general equilibrium analysis likely won't be very useful. C) two markets where the products are clearly closely related. D) two markets where firms are incredibly greedy.
Which of the following is a government program that provides monthly debit cards to poor people to purchase food?
a. SNAP b. WIC c. TANF d. EITC
Which of the following is an implication of the random walk theory?
a. Experts will be able to make money by picking and choosing the best stocks. b. There is a systematic pattern to the movement of prices in the stock market. c. Stock market investors can expect to earn a fairly steady real rate of return of about 7 percent annually. d. Even experts will be unable to predict the future movement of stock prices with any degree of accuracy.