Which of the following statements is true?
a. The law of diminishing returns states that beyond some point the marginal product of a variable resource continues to rise.
b. The marginal product is the change in total output by adding one additional unit of a fixed input.
c. Fixed costs are costs which vary with the output level.
d. When marginal productivity of a variable input is falling then marginal costs of production must be rising.
e. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.
d
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When the ratio of domestic prices to foreign prices falls:
A) the real exchange rate depreciates only when the nominal exchange rate depreciates. B) the real exchange rate depreciates even when the nominal exchange rate is constant. C) the real exchange rate appreciates. D) the real exchange rate depreciates only when the nominal exchange rate appreciates.
According to the text, which of the following is true?
A) Scientists can prove a hypothesis is true. B) Scientists can show that a hypothesis is false. C) Economists really don't try to use the scientific method. D) None of the above is true.