Why does marginal cost eventually rise as output increases?
What will be an ideal response?
Marginal cost eventually rises as output increases because of diminishing returns. If each additional unit of a variable input adds less and less to total output, it must require more of that variable input to produce each additional unit of output. This means that each additional unit of output must cost more to produce.
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Which of the following macroeconomic variables is acyclical?
A) Real interest rates B) Unemployment C) Money supply D) Consumption
The formula for the standard error of the regression coefficient, when moving from one explanatory variable to two explanatory variables,
A) stays the same. B) changes, unless the second explanatory variable is a binary variable. C) changes. D) changes, unless you test for a null hypothesis that the addition regression coefficient is zero.