The law of diminishing returns is a result of the fact that more and more units of a variable input are being added to a fixed input
Because of the limitations imposed by the fixed input, at some point the productivity of additional units of the variable input must decline. Indicate whether the statement is true or false
TRUE
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Which of these actions will occur to the budget constraint when an individual's income increases?
a. shifts outward b. shifts backward c. rotates clockwise d. cannot be determined from the information given
Suppose Al, Betty, and Carl own the only fishing companies in your village. Suppose the market price today is $10 per fish. Suppose Al catches 4,000 fish with an average total cost of $7.50, Betty catches 6,000 fish with an average total cost of $6, and Carl catches 10,000 fish with an average total cost of $7 . How much would Betty's average total cost have to fall in order for her to make as
much total profit as Carl? a. $1 b. $2 c. $4 d. $5 e. Betty cannot make as much profit as Carl with only 6,000 fish.
Unlike the traditional mortgage amortization schedule, "negative-amortization" mortgages permit the
A. value of the house to depreciate during the early years of the mortgage. B. outstanding balance to increase over a part of the life of the mortgage. C. principal payments to grow at a constant rate during the early years of the mortgage. D. mortgage payments to exceed the accrued interest during the early years of the mortgage.
Which of the following equations correctly represents the given data?
Answer the question on the basis of the following data:
A. Y d = 40 + .6C.
B. C = 60 + .4Y d .
C. C = 40 + .6Y d .
D. C = .6Y d