If a production technology has diminishing marginal product of all inputs throughout, then the producer choice set is convex.

Answer the following statement true (T) or false (F)


False

Rationale: It is possible for marginal product to be diminishing throughout but for the production frontier to still have increasing returns to scale. In that case, the producer choice set is non-convex

Economics

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When we say that money is a stock variable, we mean that

A) the quantity of money is measured at a given point in time. B) we must attach a time period to the measure. C) it is sold in the equity market. D) money never loses purchasing power.

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If the correlation between GDP and y is 0.55, we say y is

A) procyclical. B) acyclical. C) countercyclical. D) tricyclical.

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Which line might represent an immediate-short-run aggregate supply curve?


Refer to the graph above.
A. 1
B. 2
C. 3
D. 4

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Refer to the diagrams, in which AD 1 and AS 1 are the "before" curves and AD 2 and AS 2 are the "after" curves. Other things equal, inflation is absent in:



A.  panel (A) only.
B.  panel (B) only.
C.  panel (C) only.
D.  panels (A) and (C).

Economics