The production function in Scenario 7.3 exhibits:
A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale.
D) all of the above at various levels of output.
B
Economics
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When the marginal product of labor diminishes,
a. average fixed cost rises. b. average variable cost is constant. c. marginal cost rises. d. average total cost must rise. e. total cost rises at a diminishing rate.
Economics
A firm in a monopolistically competitive market makes no economic profit in the long run because
A. long-run marginal cost will be too high to make any economic profit. B. long-run price will be equal to long-run marginal cost. C. long-run marginal cost will be equal to long-run marginal revenue. D. long-run price will be equal to long-run average cost.
Economics