The law of diminishing returns begins first to affect a firm's short-run cost structure when
A) average variable cost begins to increase.
B) marginal cost begins to increase.
C) average cost begins to increase.
D) average fixed cost begins to decrease.
B
You might also like to view...
The main reason for the rising market value of corporate stock is
A) falling interest rates. B) changes in tax laws. C) increases in the prices of existing stock. D) the increased supply of new stock.
A rightward shift in the demand curve for tennis balls could be caused by
A) a fall in the price of tennis balls. B) a fall in the price of tennis rackets. C) a rise in the price of tennis lessons. D) a fall in income, assuming tennis balls are a normal good.
Active labor market policies:
What will be an ideal response?
In the short run, a firm will maximize profits if it increases output when marginal revenue is greater than marginal cost.
Answer the following statement true (T) or false (F)