Multiple Choice
If labour is the only variable resource and its marginal physical product falls as more workers are hired:
A) The law of diminishing marginal returns is at work.
B) Marginal cost is rising.
C) Average cost may still be declining.
D) Average physical product may still be rising.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The short run as the term is
Q2: Costs incurred only when production occurs are
Q4: When both average and total product are
Q5: Diminishing marginal returns are most compatible with:<br>A)Economies
Q6: Which of the following is irrelevant for
Q7: The total product curve may initially show
Q8: Which of the following statements describes the
Q9: Economies of scale exist if:<br>A)As the amount
Q10: Which of the following statements describes increasing
Q11: In economic theory the costs of a