If diminishing marginal returns have already set in for Danica's Dog Training Emporium and the marginal product of the fifth dog trainer is 18, then the marginal product of the fourth dog trainer must be
A. less than 18.
B. negative.
C. zero.
D. greater than 18.
Answer: D
You might also like to view...
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
A monopolistically competitive firm will always choose to produce where
A) marginal revenue equals marginal cost. B) marginal cost meets the demand curve. C) average total cost meets the demand curve. D) average total cost is minimized.
The money supply would tend to rise if:
a. banks decide to keep more excess reserves and people convert more of their demand deposits to currency. b. banks decide to keep more excess reserves and people deposit currency in their demand deposit accounts. c. banks decide to keep fewer excess reserves and people deposit currency in their demand deposit accounts. d. banks decide to keep fewer excess reserves and people convert more of their demand deposits to currency.
An advantage of foreign direct investment versus domestic investment for businesses can be to:
A. encourage the flourishment of 'sweatshops.' B. cut costs of production. C. reduce overall risk relative to financial investments available at home. D. increase profit without having to pay taxes on the earnings.