The law of diminishing returns helps to explain why:
A.) Marginal cost increases, in the short run, as more output is produced.
B.) The demand curve for a competitive firm is perfectly elastic.
C.) The total cost curve diminishes as long as output increases.
D.) Marginal cost decreases as more output is produced.
A.) Marginal cost increases, in the short run, as more output is produced.
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Which of the following is TRUE regarding a trend?
I. A cross section graph shows trends. II. A time-series graph shows trends. III. A scatter plot shows trends over time. A) I B) II C) I and II D) II and III
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit?
A. $10,000 B. $5,000 C. $20,000 D. $15,000
Scott receives a producer surplus of $1,000 from selling a baseball bat. If the market price of the bat is $1,500, the minimum price at which Scott was willing to sell the bat is $500
a. True b. False Indicate whether the statement is true or false
Prices above the free market equilibrium price are inefficient because:
A. no one can be made better off without hurting someone by participating in another transaction. B. they prevent mutually beneficial transactions. C. all mutually beneficial transactions happen. D. more goods could be produced using society's resources.