Which of the following statements is true?
A. Diminishing marginal returns sets in after marginal product intersects average product
B. Diminishing marginal returns means that in order to increase output at a constant rate, the firm must add larger and larger quantities of the variable inputs
C. Diminishing marginal returns implies that there will never be increasing returns to scale
D. Diminishing marginal returns implies that the firm's profits will be shrinking
B. Diminishing marginal returns means that in order to increase output at a constant rate, the firm must add larger and larger quantities of the variable inputs
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When the inflation rate is negative, the
A) real interest rate is greater than the nominal interest rate. B) real interest rate is less than the nominal interest rate. C) nominal interest rate is zero. D) real interest rate equals the nominal interest rate.
The price charged by a perfectly competitive firm is determined by
a. each individual firm b. a group of firms acting together as a cartel c. market demand and market supply d. the firm's total costs alone e. the firm's average variable cost