The law of diminishing marginal productivity implies that identical increases in all inputs eventually will result in smaller incremental increases in total output.
Answer the following statement true (T) or false (F)
False
The law of diminishing marginal productivity assumes that at least one input is fixed and cannot be increased. The definition in the question refers to diseconomies of scale.
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If the marginal social benefit of consuming a product exceeds the marginal social cost of producing it, social welfare is
a. increased by reducing output b. decreased by expanding output c. unchanged by expanding or reducing output d. increased by expanding output e. maximized
Which of the following is correct?
a. The maturity of a bond refers to the amount to be paid back. b. The principal of the bond refers to the person selling the bond. c. A bond buyer cannot sell a bond before it matures. d. None of the above is correct.