Which of these is true of the law of diminishing marginal returns?
a. It is a long run phenomena where all inputs are variable.
b. It applies mostly to the short run because some inputs remain fixed.
c. It is a long run phenomena experienced under monopoly.
d. It applies to fixed inputs in the long run.
e. It applies to fixed inputs in the short run.
b
You might also like to view...
Physical capital differences across countries can be seen in the fact that
A) more advanced economies typically have more sophisticated technology. B) the iPhone's components are produced in 30 countries. C) furniture factories in China use machines like those in North Carolina. D) students in India study the same subjects as those in the United States. E) advanced economies produce 53 percent of the world's income.
In the long run, monopolistically competitive firms have:
A. excess capacity. B. positive profits. C. minimal average costs. D. homogeneous production.
The set of assets that a holder of wealth chooses to own is called
A. an investment envelope. B. a portfolio. C. a wealth strategy. D. an asset assortment.
Which of the following factors would not shift the demand curve for loanable funds?
a. a decrease in the marginal physical product of capital b. an increase in the marginal physical product of capital c. a decrease in the price of the good produced by capital d. an increase in the price of the good produced by capital e. an increase in the interest rate