If the price of labor is constant and a firm experiences diminishing marginal product, then its
A. average variable cost increases.
B. fixed costs increase.
C. marginal costs decrease.
D. total costs decrease.
Answer: A
Economics
You might also like to view...
Which of these common resources is LEAST regulated today?
a) government land in the North b) the Great Lakes c) national parks d) the ocean
Economics
Individuals base their demand for an asset on
A) the expected return the asset offers compared with the returns offered by other assets. B) the riskiness of the asset's expected return. C) the asset's liquidity. D) the expected return, how risky that expected return is, and the asset's liquidity. E) the aesthetic qualities of the asset.
Economics