An increase in the price of a resource will cause a rightward shift of its supply curve

Ted quits his $60,000-a-year job to be a stay-at-home dad. What is the opportunity cost of his decision?

A) the value he attributes to the joy of parenting B) at least $60,000 C) zero, since he will no longer be earning a salary D) depends on the "going rate" for stay-at-home dads

Which of the following is not true about the law of diminishing returns?

A) It is a short-run phenomenon. B) It refers to diminishing marginal product. C) It will have an impact on the firm's marginal cost. D) It divides Stage I and II of the production process. E) All of the above are true.