If 15 workers produce 100 license plates, 16 workers produce 120 license plates, and 17 workers produce 130 license plates, then
a. diminishing marginal returns have not set in because the marginal product is positive
b. the marginal product of the seventeenth worker is 130
c. diminishing marginal returns must begin with the sixteenth worker
d. the marginal product of the sixteenth worker is greater than the marginal product of the seventeenth worker
e. the marginal product of the fifteenth worker must be 20
D
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In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of X is
A) 4 units of Y per unit of X. B) 2 units of Y per unit of X. C) 3/2 units of Y per unit of X. D) 1 unit of Y per unit of X.
The opportunity cost to the consumer of purchasing and consuming one more unit of a good is called the marginal benefit
Indicate whether the statement is true or false
Producers of computer software are plagued with the problem of "pirating", that is, many people copy software legally purchased by others. The industry estimates that for each legal copy of a program, there are two pirated copies in use. The industry wants strict laws for the enforcement of its "intellectual property rights," but enforcement is obviously very difficult. Economists call this
problem a. depletability. b. externality. c. durability. d. nonexcludability.
If long-run average cost increases as firm size increases, then the firm is experiencing:
a. diminishing marginal returns. b. economies of scale. c. increasing marginal returns. d. diseconomies of scale.