Can a firm experience diminishing returns in the long run?
What will be an ideal response?
No. A firm will never experience diminishing returns in the long run because in the long run all inputs are allowed to vary. Diminishing returns occur when the marginal product decreases because a variable input is increased while at least one other variable is held constant.
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The interest parity condition can be written as
A) R = R - (Ee - E)/E. B) R = R + (Ee - E)/E. C) R = R2 - (Ee - E)/E. D) R = R /(Ee - E). E) R = R + (Ee + E)/E.
Which of the following is a long-term financial instrument?
A) a negotiable certificate of deposit B) a repurchase agreement C) a U.S. Treasury bond D) a U.S. Treasury bill
Which of the following goods' prices are not considered when calculating core inflation?
A. food B. housing C. clothing D. entertainment
What is consumer surplus?
a) a buyer's willingness to pay, minus price b) a buyer's willingness to pay, plus price c) the price of the product minus the buyer's willingness to pay d) the price of the product plus the buyer's willingness to pay