Comment on the following statement: "Isoquants must be downward sloping."
What will be an ideal response?
The statement is true. As we move from left to right, the amount of the input on the horizontal axis is increasing. In order for output to remain constant, this must mean that the amount of the input on the vertical axis must be declining. Thus, the isoquant will be downward sloping.
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If, after hiring the 6th worker, a firm's output falls, then the marginal product of the 6th worker is negative
Indicate whether the statement is true or false
The rise in agricultural discontent in the late 19th century can be best explained by
a. the rise of railroad cartels in the Midwest. b. the rise of global market forces not easily observed by the farmers. c. a decline in the value of agricultural exports from 1870 to 1900. d. predatory lending by banks, resulting in increased farm repossessions.